Statement of Responsibilities
A. Nature
The Audit and Advisory Services Department is established as an independent appraisal activity within the University for the review of accounting, financial and operating systems as a service to management. It is a managerial control which functions by reviewing, measuring and evaluating the effectiveness of other controls.
B. Objective and Scope
The objective of internal auditing is to assist all levels of University management in the effective discharge of their responsibilities by furnishing them with objective analyses, appraisals, recommendations and comments concerning the activities reviewed. Therefore, the Audit and Advisory Services Department is concerned with any phase of activity where it can be of service to management. The attainment of this overall objective involves such activities as:
- Reviewing and appraising the soundness, adequacy and application of the accounting, financial and operating controls that comprise the internal control system of the University.
- Ascertaining the extent of compliance with established policies, procedures and applicable laws and regulations.
- Ascertaining the extent to which University assets are accounted for and safeguarded from losses of any kind.
- Ascertaining the reliability of management data developed and reported within the University.
- Reporting the results of reviews of organizational units in a timely manner.
- Recommending necessary improvements in the internal control system where controls have been found to be malfunctioning, insufficient or nonexistent.
- Recommending necessary improvements in the accountability and safeguarding of University assets and the reliability of management data.
- Reviewing the timeliness and appraising the effectiveness of corrective actions.
C. Authority and Responsibility
The Audit and Advisory Services Department has the authority for full access to all University records, properties and personnel relevant to the subject under review. The Department is free to review and appraise policies, plans, procedures, and records.
The responsibilities of the Audit and Advisory Services Department are as follows:
- Develop a comprehensive University internal audit program. This program will include the evaluation of the adequacy and effectiveness of internal controls and the review of compliance with University policies and procedures.
- Safeguard the scope and professional proficiency of internal audit activity by means of a quality assurance program.
- Institute controls to ensure that audit observations have been reviewed with the management responsible for the activity. See that observations are communicated to management at various levels so as to motivate corrective actions.
- Participate in the development of automated information systems to ensure that these systems incorporate necessary controls.
- Submit annually to the campus Committee on Audit, Internal Control and Financial Accountability the Department's audit plan for approval.
- Develop effective professional relationships with external auditors.
- See to the recruitment and training of the audit staff.
- Institute appropriate budgetary and cost control over the auditing program. Request budgetary adjustments when necessary to provide the tools and personnel to meet the challenges of the Department's responsibilities as a managerial control.
- Coordinate activities of the Audit and Advisory Services Department with others so as to best achieve the objectives of the department and the University.
- Discharge all responsibilities in a manner which is consistent with the Code of Ethics of the Institute of Internal Auditors.
In performing its functions, the Audit and Advisory Services Department has no direct responsibility for, or authority over, any of the activities which are reviewed. Therefore, the review and appraisal activity does not in any way relieve other persons in the organization of the responsibilities assigned to them.
D. Independence
The Director of Audit and Advisory Services reports to the Chancellor and to the University Auditor. To maintain complete objectivity, the Audit and Advisory Services Department will not develop and install procedures, prepare records or engage in any other activity which it normally would be expected to review and appraise and which could reasonably be construed to compromise its independence.