Busitema University Internal Audit Charter

About audit charter intro...

Internal Audit Charter

The University Council and  Management establish and  support Internal  Audit as an independent and continuous appraisal  function to examine  and evaluate  University activities  as a service. Internal audit  reports  administratively  to the Vice Chancellor (VC) and functionally  to the Audit Committee. In carrying  out its duties  and responsibilities, internal  audit  will  have  full,  free  and  unrestricted access to all University activities, records,  property  and personnel.

To be acentre of excellence in provision of effective assurance and consulting services to Busitema University.

To add value and contribute to the improvement of University operations by providing independent, objective assurance and consulting services. This is achieved by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal controls and governance processes.

The Directorate of Internal Audit derives its authority from the University Council through the Audit Committee,  as  well as the applicable national laws and International Auditing standards.

The rights and obligations of internal audit are enshrined  in Section 48 of the Public Finance  Management Act 2015 as amended and the International professional  practices framework (IPPF). In carrying out their duties and responsibilities, staff of internal audit are authorized to:

  • Have full, free and unrestricted  access to all University  functions, activities,  records,  property  and personnel.
  • Have free access to the Audit committee through the Director Internal Audit Head of Internal  Audit.
  • Access adequate resources, determine  the scope of work, set frequencies,   select  subjects  and apply  appropriate techniques  to execute  audit objectives.
  • Obtain the necessary assistance of personnel in the department/unit of the University where they perform audits, as well as other specialized services from within or outside  the University.
  • In order to preserve the independence and objectivity of the internal audit, members of the directorate of internal audit are not authorized to:
  • Perform  any operational  duties  of the University,   including  but not limited  to acting  on behalf  of other persons  or assuming any responsibilities assigned to persons  in any other unit outside  the internal  audit function.
  • Initiate or approve transactions external to  the internal audit function.
  • Direct the activities of any University employee not employed by internal audit; except to the extent that such employee has been assigned to an internal  audit team or to assist the internal auditors.


The Internal audit staff in performance of their responsibilities shall administratively be accountable to the Vice  Chancellor and functionally to the Audit Committee.

The primary role of the Directorate  of Internal Audit is to provide independent, objective assurance and consulting services designed to add, value and improve the effectiveness of the University's governance, risk  management and  internal  control. It is internal audit's responsibility to provide an independent and  continuous risk-based appraisal of the University's functions to ensure that the University's systems and processes of controls  are, adequate and effective in achieving University objectives, and to assist. Management and the University Council in fulfilling their responsibilities relating to good governance.

The scope  of work for the internal  audit therefore encompasses the following  assigned responsibilities:

  • Review the University units at appropriate intervals   to determine whether the internal controls are efficiently and effectively executed  in accordance with the University   instructions, policies and procedures,  and in a manner  that  is consistent  with both the University's objectives   and  high standards   of  administrative practice.
  • Evaluate  the effectiveness, efficiency  and economy  of operations and   recommend    appropriate    solutions    and   opportunities     to improve operating  performance.
  • Review  the system  for generating  financial  information,   and the reliability  and integrity  of financial  statements   and other  related accounting  and financial  information
  • Conduct  system  audits  to ascertain  the effectiveness   and appropriateness    of  the  internal   control   environment.    Evaluate the effectiveness  of the enterprise  risk management   practices  and procedures.
  • Carry out compliance reviews to confirm conformance with University policies, instructions, and applicable legislations and regulations.
  • Conduct reviews  on  resource  acquisition, deployment, utilization disposal and whether  there are appropriate and adequate arrangements for safe custody  of University  assets.
  • Review the  monthly, quarterly   returns  and  any  other  related information    required  by the Government ministries, the Accountant General, and Internal  Auditor  General  as applicable.
  • Prepare  and submit  the quarterly  audit  reports  and work plans  to the Internal  Auditor  General.
  • Perform special audits and investigations as may be requested by the Audit Committee Management  and any other competent authority.


Management Responsibility

It is the duty of Management to put in  place  and operate effective systems of internal control;  risk  management and  governance processes. The Internal audit's role is to provide assurance to the Audit committee  that  the established  internal  controls are designed and operating  effectively.  In addition internal audit may assist management by providing consulting services on demand.

Risk Based Planning

All audit work must be properly planned and approved. The Head of Internal Audit is responsible   for preparing  a flexible risk based annual internal audit plan for review and approval.by the Audit Committee. The Head of Internal Audit is also responsible  for Implementation of the audit plan as approved, including  where appropriate  any special tasks or projects requested by Management and the Audit committee.

The Head of Internal Audit is required to seek Audit Committee approval to defer or amend  the approved internal audit plan

Audit Reports

Only the Head of Internal Audit may issue a final report of an audit, and all audit staff should submit draft reports  to him/her for review in accordance  with agreed timetable on any engagement. Management responses to audit findings shall be submitted to internal  audit within a week (seven days) from the date of issuance of the audit report. A management  meeting shall be held there after for validation of the audit findings in preparation for the Audit  Committee  meeting   to discuss the report.

Any material  differences  in opinion between the audited unit and the directorate of internal audit on any audit issue should be referred to the Vice Chancellor for  consideration, and  if the difference is not resolved  should be escalated to the Audit committee and  the University  Council. It should  be noted  that  the directorate  of  internal audit  provides  an independent view of key risks and as such,  if management  is willing to accept key risks within their portfolio,  this acceptance  of risk shall be documented  and discussed  at the Audit Committee meeting.

In pursuance of its oversight obligations, the directorate of internal audit shall have reporting  relationship with the Audit Committee and the Vice Chancellor.  Through appropriate channels, the staff of Internal audit shall liaise, interact with and compliment efforts  by Office of the Internal Auditor General, Auditor General, Accounting officer, Management and other organs to promote efficiency, effectiveness  and economy in utilization of resources in the attainment of the University objectives

The directorate of internal  audit shall operate in accordance with the Institute of Certified Public Accountants of Uganda (ICPAU) and the International Standards for professional practice of internal auditing of the Institute of  Internal Auditors. All  Internal audit activities and recommendations will be to the highest standards  and ethical considerations and consistent with Government of Uganda laws, professional standards and best practices

Charter Implementation

The Vice Chancellor is  responsible for the overall implementation of this Charter; Through the Head of Internal Audit, she/he shall ensure that the directorate of internal audit is appropriately resourced to address the needs of the University and conforms to the internationally recognized standards in respect to but not limited to its status and procedures.

The Head of Internal Audit is responsible for quality assurance and supervision of the  internal audit staff and will continuously liaise with the Audit Committee, Vice Chancellor and Accounting  Officer for appraisal, staffing needs, and training, technical and professional development.

The Head of  Internal  Audit must  develop  and  maintain a quality assurance and improvement program (QAIP) that covers all aspects of the directorate  of internal  audit,  with the ultimate goal of developing  an internal audit directorate with a scope and quality of work that includes conformance with the standards and  whether internal  auditors  apply the code of ethics.

The Head of Internal  Audit  is responsible for ensuring that the directorate of internal audit conducts periodic internal assessment that includes both ongoing  monitoring and self-assessments. In addition to internal assessments, the Head of Internal Audit is responsible  for ensuring  that the directorate of internal audit conducts an external assessment at least once every five years.

The Vice Chancellor and  the  Head  of Internal  Audit shall,  at least once in every two years review this Charter and propose relevant revisions to this charter to the Audit Committee deemed necessary for proper functioning of the directorate.