Purpose

The  purpose  of  the  Internal  Audit  function  is  to  provide  independent,  objective assurance  and  consulting  services  that  add  value  and  improve  the  operations  of Northern Arizona University.  Internal Audit reviews help NAU accomplish its objectives by   bringing   a   systematic,   disciplined   approach   to   evaluate   and   improve   the effectiveness of risk management, control, and governance processes.

Internal Audit evaluates risk exposures relating to NAU’s governance, operations, and information systems for:

•   Effectiveness and efficiency of operations;

•   Reliability and integrity of financial and operational information;

•   Safeguarding of assets; and

•   Compliance with laws, regulations, and contracts.

Authority

Internal Audit staff has unrestricted access to all NAU departments, records, reports, activities, property, and personnel that they consider necessary to discharge their audit activities.  Internal Audit staff will exercise discretion in the review of records to assure the necessary confidentiality of matters that come to their attention.

Responsibilities

 The responsibility of the internal audit function is to serve Northern Arizona University in a manner that is consistent with the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing and Code of Ethics.

Internal audit responsibilities include, but are not limited to:

•      Developing and implementing a risk-based annual audit plan that recognizes the scope of work performed by ABOR and external auditors;

•      Examining and evaluating the adequacy and effectiveness of the systems  of internal controls, including information systems security and control;

•      Identifying opportunities for reducing costs, improving processes, and enhancing the University’s reputation;

 •      Appropriately documenting the results of all audit work performed;

•      Performing   advising   and   consulting   services,   as   requested,   to    assist management in meeting its objectives;

•      Responding to requests and special audit projects requested by the Arizona

•      Board of Regents Audit Committee;

•      Promptly and properly reporting any internal control weaknesses, concerns, and opportunities for improvement to NAU management;

•      Distributing audit reports to management and the Arizona Board of Regents Audit Committee; and

•      Following up on previously completed audits to ensure management   is implementing     actions      to      satisfactorily      implement      reported      audit recommendations.

The  internal audit  staff  reports functionally  to  the  Arizona  Board  of  Regents  Audit Committee and administratively to the Vice President for Finance and Administration.  The Chief Audit Executive confers with the Audit Committee of the Board of Regents at least annually, outside the presence of University officials, on any subject related to Internal Audit's area of responsibility.  The Chief Audit Executive may communicate directly to the Chair of the Audit Committee.