internal audit charter

internal audit charter

Created Jan 2004 CHARTER FOR OXFAM GB INTERNAL AUDIT FUNCTION 1. Internal Audit is an independent review function set up within Oxfam GB (OGB) as a service to the Trustees and all levels of management. The Head of Internal Audit is responsible for effective review of all aspects of risk management and control throughout OGB. INDEPENDENCE 2. Internal Audit is independent of the activities which it audits to ensure the unbiased judgements essential to its proper conduct and impartial advice to management. ROLE AND SCOPE 3. The role of Internal Audit is to understand the key risks OGB faces and to examine and evaluate the adequacy and effectiveness of the system of risk management and internal control as operated by OGB management. Internal Audit has unrestricted access to all OGB activities, staff and data relevant and required for audit purposes, in order to review, appraise and report on: a) the adequacy and effectiveness of the systems of financial, operational and management control and their operation in practice in relation to the risks to be addressed; b) the extent of compliance with, relevance of, and financial effect of, policies, standards, plans and procedures established by the Council and CMT and the extent of compliance with external laws and regulations, including reporting requirements of regulatory bodies; c) the extent to which the assets and interests are acquired economically, used efficiently, accounted for and safeguarded from losses of all kinds arising from waste, extravagance, inefficient administration, poor value for money, fraud or other cause and that adequate business continuity plans exist; d) the suitability, accuracy, reliability and integrity of financial and other management information and the means used to identify measure, classify and report such information; e) the integrity of processes and systems, including those under development, to ensure that controls offer adequate protection against error, fraud and loss of all kinds, and that the Process aligns with OGB’s strategic goals; f) the operation of OGB’s corporate governance arrangements; g) the suitability of the organisation of the units audited for carrying out their functions, and to ensure that services are provided in a way which is economical, efficient and effective; h) the follow-up action taken to remedy weaknesses identified by Internal Audit review, ensuring that good practice is identified and communicated widely; in addition, Internal Audit will provide resource for any specific risk and control reviews requested by CMT or TAFG. Created Jan 2004 REPORTING 4. Internal Audit reports regularly on the results of its work via line management to CMT and to the Trustee Audit and Finance Group (TAFG), which is a Council subcommittee. The Head of Internal Audit is accountable to CMT and the TAFG for: a) providing regular assessments of the adequacy and effectiveness of OGB’s systems of risk management and internal control; b) reporting significant control issues and potential for improving risk management and control processes; c) periodically providing information on the status and results of the annual audit plan and the sufficiency of Internal Audit resources. The Head of Internal Audit’s line management reporting is to the Finance Director. In addition, the Head of Internal Audit meets regularly with the Director and the Chair of TAFG, and at least once a year, meets TAFG in session without any management present. The Head of Internal Audit has right of direct access to the Director, the Chair of TAFG, and the Chair of Trustees, and can exercise this right where significant concerns regarding risk and control cannot be dealt with through the normal reporting channels. RESPONSIBILITY 5. The Head of Internal Audit is responsible for: a) development and maintenance of a strategic audit plan based on an understanding of the significant risks to which OGB is exposed; b) developing a flexible annual plan and submitting this ( within the Corporate Planning cycle), via CMT, to the TAFG for review and agreement; c) implementing the agreed audit plan; d) providing CMT and TAFG with an annual control assurance report; e) maintaining a professional audit staff with sufficient knowledge, skills and experience to carry out the plan; f) providing structured opportunity for line staff personal development and extending the skill set available to Internal Audit by line staff actively taking part in audits outside their areas of responsibility; g) developing audit staff for redeployment elsewhere in the organization; h) Liaising with external audit and any other relevant review functions. STANDARDS OF AUDIT PRACTICE 6. OGB Internal Audit will meet the Standards for Professional Practice of Internal Auditing of the Institute of Internal Auditors. The Head of Internal Audit should carry out monitoring of Internal Audit’s processes on a regular basis, and management may rely on the professional expertise of the Head of Internal Audit to provide assurance. From time to time independent reviews should be carried out: for example, peer reviews by another Internal Audit function or review by External Audit. TAFG should regularly assess the role and effectiveness of Internal Audit. 26 Created on 10/21/2010 10:44:00 AM . Practice of Internal Auditing of the Institute of Internal Auditors. The Head of Internal Audit should carry out monitoring of Internal Audit s processes. status and results of the annual audit plan and the sufficiency of Internal Audit resources. The Head of Internal Audit s line management reporting