Internal Audit Charter

STEPHEN F. AUSTIN STATE UNIVERSITY
DEPARTMENT OF AUDIT SERVICES
INTERNAL AUDIT CHARTER
October 22, 2012

 

Purpose

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the university’s operations. It helps the university accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

The purpose of the Department of Audit Services is to provide the Board of Regents and the President an independent appraisal of the adequacy and the effectiveness of the University's system of internal administrative and accounting controls and the quality of performance when compared with established standards. The primary objective is to assist the Board of Regents, the President and University management in the effective discharge of their responsibilities.


Authority

The Department of Audit Services is an integral part of Stephen F. Austin State University and functions within established policies. The Director of Audit Services reports functionally to the Board of Regents and administratively to the President.

The Department of Audit Services will have unrestricted access to all University activities; records, both manual and electronic; property; and personnel relevant to any area being reviewed. Members of the Audit Services' staff will handle all documents and other information acquired in the course of their duties prudently.


Standards and Independence

The Department will operate within the guidelines of the Texas Internal Auditing Act (Article 6252 – 5d., V.A.C.S.), the Institute of Internal Auditors (IIA) Professional Practices Framework which includes the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing as mandatory guidance. In addition, where applicable the Department will follow Generally Accepted Government Auditing Standards (GAGAS).

The Department’s internal auditors will uphold the principles of integrity, objectivity, confidentiality, and competency. Internal auditors will be independent of the activities or operations they review; they will not engage in any activity which would impair their independence.


Responsibility

The Department of Audit Services will fulfill its responsibility to the Board and the President by:

  • developing an audit plan based on a risk analysis which includes consideration of the university’s goals and objectives and the concerns of management and the Board.
  • providing audit coverage that consistently meets the needs and expectations of management
  • following up on identified weaknesses, findings and recommendations from previous audit work
  • participating in a program of quality assurance designed to ensure the increasing professionalism of the department and standard of the work performed
  • performing consulting services including advisory and related service activities, the nature and scope of which are agreed upon and which are intended to add value and improve the university’s governance, risk management, and control processes without assuming management responsibility. Examples include counsel, advice, facilitation, training, and committee service.



Annually the Director of Audit Services will submit information on the annual audit plan, work schedule, and staffing plan to the President for his review and to the Board of Regents for their approval. Quarterly the Director will provide activity reports to the President and the Board detailing progress against the annual audit plan, audit accomplishments, and highlights of any significant audit findings and recommendations. The Director of Audit Services will submit reports as required to the State Auditor’s Office, Governor’s Office, Legislative Budget Board and Sunset Advisory Commission.

The scope of audit activities will include all controls, reports and operations of the University. The Department of Audit Services will examine and evaluate:

  • The reliability and integrity of financial and operating information and the means used to identify, measure, classify and report information.
  • The systems established to ensure compliance with policies, plans, procedures, laws and regulations that could have a significant impact on the University.
  • The means of safeguarding assets and verifying their existence.
  • The economy and the efficiency with which resources are employed.
  • The extent to which the operations and programs of the University are consistent with its objectives and goals.
  • The ethics objectives and activities of the University.
  • The potential for fraud and the management of fraud risk.

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