UOWIA Charter
Role
The role of UOWIA Internal Audit (UOWIA) is to assist management of the University by providing independent advice on operations and performance and by assessing the effectiveness of internal controls. The Function aims to promote efficiency, economy and effectiveness of management processes as well as reliability and accuracy of operations.
Authority
The University Internal Audit Manager is authorised to direct a broad, comprehensive program of internal auditing within the University.
The Internal Audit Manager and members of audit staff, including consultants engaged to undertake special reviews, are authorised to have full, free, and unrestricted access to all functions, property, personnel, records, accounts, files and other documentation of the University.
Information accessed is to be strictly used for audit purposes.
Independence
Independence is essential to the effectiveness of internal auditing. The Internal Audit Manger is functionally responsible to the University's Audit Management and Review Committee to ensure not only the broadest range of audit coverage but adequate consideration of audit reports and appropriate action on audit recommendations.
The Audit Management and Review Committee is a committee of the University's Council consisting of three external members nominated by the University Council and a nominee of the Vice Chancellor (see Terms of Reference for Audit Management and Review Committee).
UOWIA must be independent of activities audited and not assume operating responsibilities.
Responsibilities
The Internal Audit Manager (the Manager) is responsible to the Vice-Chancellor in relation to all internal audit and fraud and corruption matters. The Manager shall report to the University Council through the Audit Management and Review Committee, on the performance of the Internal Audit Function, in particular on progress against the approved Audit Plan.
The Manager will have unfettered access to the Executive of the University and the Audit Management and Review Committee and is responsible for management of the University's internal audit activities.
The existence of UOWIA does not relieve management from the responsibility of ensuring that adequate controls are in place for the proper control of business activities for which they are accountable.
Standards
UOWIA shall comply with the following:
- Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors;
- Statement on Information Systems Auditing standards issued by the Information Systems and Control Association; and
- Audit Practice Statements as appropriate to internal auditing of the Australian Society of Certified practising Accounts and the Institute of Chartered Accountants in Australia.
Staff of UOWIA are required:
- To comply with professional standards of conduct;
- To possess the knowledge, skills, and technical proficiency essential to the performance of internal audits;
- To be skilled in dealing with people and in communicating audit issues effectively;
- To maintain their technical competence through a program of continuing education; and
- To exercise due professional care in performing internal audits.
Audit Plan
A University Internal Audit Plan shall be prepared for approval by the Audit Management and Review Committee and reviewed each year, showing the areas proposed for review during the forthcoming year. The Plan shall be based on an assessment of the University's business risks. A comprehensive assessment of the University's business risks should be conducted by Internal Audit on a regular basis.
The Audit Management and Review Committee shall regularly review the annual Audit Plan and the actual audit performance. Any necessary amendments to the plan shall be submitted to the Audit Management and Review Committee for consideration and approval.
Scope and Frequency of Audit
The scope of UOWIA encompasses the examination and evaluation of the adequacy, effectiveness and efficiency of the system of internal control and management performance. UOWIA covers most activities of the University and its commercial activities. It involves the review of all financial and non-financial operations, both manual and computerised. UOWIA also extends to management information systems.
UOWIA will also undertake special and corrupt conduct investigations; advise on fraud prevention; and act as a reference source for the Protected Disclosures Act.
Audit Technique
UOWIA shall use the most appropriate auditing methodology for each audit depending on the nature of the audit and pre-determined parameters.
Audit Reports
On the conclusion of the audit, a copy of the report on the audit outcome shall be issued to the client and to the Vice Chancellor and shall be tabled at the next meeting of the Audit Management and Review Committee.
The report shall present the audit objectives, scope, and audit opinion based on the outcome of the audit and an agreed implementation timetable for audit recommendations.
UOWIA reports will not be finalised until management agreement on the implementation timetable for remedial action has been obtained.
The Internal Audit Manager shall provide regular progress reports to the Vice Chancellor and the Audit Management and Review Committee summarising all audit activities undertaken during the period since the last report and progress against the annual Audit Plan.
Liaison with External Auditors
Internal and external audit activities should be coordinated to ensure adequate audit coverage and to minimise duplication of effort.
External audit shall be invited to attend all Audit Management and Review Committee meetings as an observer.
Access to UOWIA working papers and reports shall be made available to review by external auditors.
Amendment of Charter
The Internal Audit Manager is responsible for maintenance of this Internal Audit Charter to ensure that it remains relevant and up to date. Amendment is subject to review by the Audit Management and Review Committee.
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