Internal Audit Charter
Introduction
Internal auditing is an independent appraisal activity for the review of accounting, financial, and other operations as a service to management. It is a control which functions by examining and evaluating the adequacy and effectiveness of other controls.
The internal audit staff reports to the Vice President for Administration and Finance.
Responsibility and Authority
The responsibility of the internal audit function is to serve Northern Arizona University in a manner that is consistent with the philosophy and guidelines of the Institute of Internal Auditors as stated in the Institute's Standards for the Professional Practice of Internal Auditing, Code of Ethics, and Statement of Responsibilities of Internal Auditing. This responsibility includes coordinating internal audit activities with others, including Arizona Board of Regents audit staff and Arizona Auditor General's Office, so as to best achieve the audit objectives and the objectives of the organization.
The internal audit staff has no authority over, or responsibility for, the activities they audit. Audit review and appraisal does not relieve other persons of responsibilities assigned to them. Authorization is granted to the internal audit staff for unrestricted access to the University's functions, records (irrespective of medium), property and personnel relevant to a review. Any activity is subject to audit review. The internal audit staff is to be advised of all external auditors who are performing audits of university records.
The University Auditor shall confer with the Audit Committee of the Board of Regents at least annually, outside the presence of University officials, on any subject germane to Internal Audit's area of responsibility. In addition, if the circumstances ever warrant such action, the University Auditor may communicate directly with the Chair of the Audit Committee.
Procedures
The internal audit department develops an audit plan utilizing risk analysis to identify the major areas and units needing audit attention. This involves periodic assessments of the university operating units and control functions to identify areas of potential institutional risk.The Arizona Board of Regents Audit Committee may also assign special audit projects based on identified problems or their information needs. For each audit selected the internal audit staff will perform the following steps:
- Conduct an entrance interview with the dean, director or department head of the activity.
- Perform fieldwork which includes interviews with departmental personnel, examination and test work of selected records, and documentation of the work performed.
- Prepare a rough draft of the audit report and review the findings and recommendations with the appropriate employee and chain-of-command through the dean/director/department head, incorporating the responses to the recommendations into the audit report.
- Conduct an exit interview with the dean/director/department head of the audited activity and review the draft of the audit report.
- Send a copy of the final audit report to the dean/director/department head, the responsible vice president or provost.
- Attend meetings called to review audit recommendations and/or their implementation.
The chief fiscal/administrative representative(s) of the responsible vice presidents/provost is to be kept informed at all stages of the audit and made aware of any significant audit findings or issues. The Vice President for Administration and Finance is to be informed immediately on any audit findings involving:
- Potential legal wrongdoing (e.g., conflict of interest, embezzlement, theft),
- Serious variances from Federal or State laws/ regulations or Arizona Board of Regents' policies or regulations, or
- Substantial monetary savings to NAU.
Contact Info
P.O. Box 4115
Flagstaff, AZ 86011
928-523-6448
928-523-6459
928-523-0721