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.
Busitema University Internal Audit Charter
About audit charter intro...
Internal Audit Charter
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.
Accountability
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.