The Intemal Audit Director will report functionally to the College President and simultaneously to the Chairman of the Audit Committee of the College Board of Trustees and administratively to the College President or designee; and is responsible for the development, review and modification of audit policies, procedures, and goals for the conduct of audits. Annually, the Internal Audit Director will meet with and submit to the College President and Audit Committee Chairman a report summarizing intemal audit activity during the preceding calendar year and solicit input for forthcoming audits.
AUTHORIZATION AND RESPONSIBILITIES
Internal Audit has the authority to audit all parts of the College and shall have full and complete access te any of the College's records, physical properties, and personnel relevant to the performance of an audit. Documents and information given to intemal audit staff during a periodic review will be handled in the same prudent manner as by those employees normally accountable for them. Internal Audit will make special efforts to accommodate the College's daily operations in scheduling and conducting reviews.
Intemal Audit will have no direct responsibility or authority for any of the activities or operations they review. They should not jeopardize their independence by developing and installing procedures, preparing records, or engaging in activities that would normally be reviewed by intemal audit. Furthermore, an intemal audit does not in any way relieve other persons in the College of the responsibilities assigned to them.
DEFINITION OF AUDIT SCOPE
The scope of internal auditing encompasses the examination and evaluation of the adequacy and effectiveness of the College's system of internal control and the quality of performance in carrying out assigned responsibilities. The scope of internal auditing includes:
- Reviewing the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
- Reviewing the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations that could have significant impact on operations and reports, and determining whether the College is in compliance.
- Reviewing the means of safeguarding tangible and intangible assets and, as appropriate, verifying the existence of such assets.
- Reviewing established systems of internal control to ascertain whether they are functioning as designed.
- Reviewing and appraising the economy and efficiency with which resources are employed.
- Reviewing specific programs or initiatives to ascertain whether results are consistent with established objectives and goals and whether the programs or initiatives are being carried out as planned.
Managements' plans or actions taken to correct reported conditions are evaluated by the Internal Audit Director with reporting to and oversight by the Board of Trustees' Audit Committee for satisfactory implementation of audit recommendations. If the implementation is considered unsatisfactory, the line Vice President or the Provost is responsible to see that appropriate actions are taken to achieve satisfactory compliance.
A written audit report will be prepared and issued under the direction of the Internal Audit Director following the conclusion of each audit and will be distributed as appropriate. The manager of the activity or department receiving the report will respond to any audit recommendations or the responses will be included in the finalized report. The response should include a timetable for anticipated completion of action to be taken and an explanation for any reconunendations that will not be addressed.
CODE OF ETHICS
Internal Audit staff has a responsibility to conduct themselves so that their integrity, objectivity, confidentiality, and competency are not open to question. Standards of professional behavior are based upon the Code of Ethics issued by the Institute of Intemal Auditors. Employees of the Internal Audit Department will:
- Exercise honesty, objectivity, and diligence in the performance of their duties and responsibilities.
- Exhibit loyalty in all matters pertaining to the affairs of the College and not knowingly be a party to any illegal or improper activity.
- Refrain from entering into any activity which may be in conflict with the interest of the College or which would prejudice their ability to objectively carry out their duties.
- Decline to accept anything that may impair or be presumed to impair their professional judgment.
- Be prudent in the use of information acquired in the course of their duties and not use confidential information for any personal gain or in a manner that knowingly would be detrimental to the welfare of the College.
- Use reasonable care to obtain sufficient, factual evidence to support the conclusions drawn and, in reporting, reveal such material facts known to them which, if not revealed, could distort the report of the results of operations under review or conceal an unlawful practice.
- Engage only in those projects which they have the necessary knowledge, skill, and experience.
- Continue to strive for improvement in the proficiency and effectiveness of their service.