This charter defines the purpose, authority, independence, objectivity and general responsibilities of the Internal Audit Department.
Purpose
- The Internal Audit function, at Kentucky State University, is an independent and objective, assurance activity designed to add value and improve the University’s operations.
- Internal Audit assists the University in accomplishing its goals and objectives by evaluating, analyzing, appraising the University’s operations in a systematic and disciplined approach to improve the processes for effective risk management, control, and University governance.
Authority
- Internal Audit is responsible and reports to the University's President and to the Board of Regent’s Audit Committee.
- Authorization is granted to Internal Audit by the Audit Committee of the Board of Regents and the President for full and unrestricted access to the University's records, irrespective of medium, property and personnel. Documents and information given to Internal Auditor during a review are handled in at least the same prudent manner as by the employees normally accountable for them.
Independence and Objectivity
- Objectivity and independence are essential to internal auditing; therefore, Internal Audit shall be independent of the activities audited and shall assert no direct responsibility or authority over activities reviewed. Internal Audit does not relieve persons of any responsibilities assigned to them, prepare records, or engage in activities that would normally be reviewed by Internal Audit.
- Management is responsible for establishing and maintaining controls to discourage the perpetration of fraud. Internal Audit is responsible for examining and evaluating the adequacy and the effectiveness of actions taken by management to fulfill this obligation. Internal Audit should have sufficient knowledge of fraud to be able to identify indicators that fraud might have been committed. However, Internal Audit is not expected to have the knowledge equivalent to a person whose primary responsibility is to detect and investigate fraud. Audit procedures alone, even when carried out with due professional care, do not guarantee that fraud will be detected. Further, it is recognized that the performance of audits and other reviews may include the assistance of other professionals with specific expertise.
- All Internal Audit endeavors are to be conducted in compliance with University policies and procedures, the Code of Ethics and the Standards for the Professional Practice of Internal Auditing as promulgated by the Institute of Internal Auditors.
General Responsibilities
The general responsibilities of the Internal Audit Department include, but are not limited to, conducting reviews of University departments and control systems at appropriate intervals.
- Review the administrative and accounting controls to determine whether the consistency to both the University’s goals and objectives, as well as the operating policies and procedures.
- Review the adequacy of the controls and compliance with relevant policies, plans, and procedures, as well as State and Federal regulations that significantly impact the University’s operations and reporting.
- Review the University operations to determine whether resources are used efficiently and effectively, and whether there are areas of cost savings and increased efficiency of operations for the University.
- Conduct special examinations and provide advisory services at the request of Senior Management and the Board of Regents.
- Consult on internal controls for new and major system changes prior to implementation to ensure that adequate internal controls and documentation are provided.
- Conduct follow-up reviews to determine whether appropriate action has been taken on significant audit observations. If actions taken or proposed action is determined to be unsatisfactory, see that further discussions are held to achieve a satisfactory disposition.
Submit an annual audit plan to the President and to the Audit Committee of the Board of Regents for approval.