WHAT IS INTERNAL AUDITING?
Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
The department is headed by the Chief Internal Auditor who reports administratively to the Vice Chancellor and functionally to the Audit and Risk Management Committee of the Council
WHAT IS RISK MANAGEMENT?
Risk management encompasses the identification, analysis, and response to risk factors that form part of the life of an organisation. Effective risk management means attempting to control, as much as possible, future outcomes by acting proactively rather than reactively. Therefore, effective risk management offers the potential to reduce both the possibility of a risk occurring and its potential impact.
WHAT IS THE ROLE OF AUDIT COMMITTEE?
To assist the Audit and Risk Management committee in fulfilling its oversight responsibility for the financial reporting process, the system of internal control, risk Management , audit process and the University process for monitoring compliance with laws and regulations and code of conduct.
- The Audit and Risk Management committee should drive the assessment of the performance of the Chief Internal Auditor.
- Examine internal and external audit reports and recommendations after management response to ensure action is taken.
- The committee is responsible for communicating with the internal and external auditors. In its overseeing role, the committee should focus on:-
- The changing business environment
- Changing financial reporting requirement
- Audit findings, including comments governance, risk and controls
- Proposed audit scope and audit coverage and approaches with respect to complex, high risks, and judgment areas
- Management response to specific audit recommendations.
- The Audit and Risk Management committee plays a key role with respect to the integrity of the entity‘s financial information, its system of governance, risk and internal controls, and the legal and ethical conduct of management and employees.
- Depending upon circumstances affecting an entity, the functions undertaken by an audit committee will generally encompass the following areas:
- Evaluating whether processes are in place to address key roles and responsibilities in relation to risk management.
- Evaluating the adequacy of the control environment to provide reasonable assurance that the systems of internal control are of a high standard and functioning as intended.
- Performing an independent review of the financial statements to ensure the integrity and transparency of the financial reporting process
- Monitoring the effectiveness of an entity‘s performance information and compliance with the performance management framework and performance reporting requirements.
- Evaluating the quality of the internal audit function, particularly in the areas of planning, monitoring and reporting.
- Engaging with external audit and assessing the adequacy of management response to issues identified by audit.
- Reviewing the effectiveness of how the entity monitors compliance with relevant legislative and regulatory requirements and promotes a culture committed to lawful and ethical behaviour.