CHARTER

SCOPE OF WORK 

The scope of work for Audit and Advisory Services is to ascertain that the system of internal control, as designed and represented by management, is adequate and functioning in a manner to provide reasonable assurance regarding the achievement of university objectives in the following categories: 

• Resources are acquired economically and used effectively and efficiently. 

• Significant financial, managerial, and operating information is accurate, reliable, and timely.  

• Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.

These reviews and evaluations of internal control are advisory in nature.  The university’s management continues to be responsible for establishing and maintaining an adequate internal control system. 

INDEPENDENCE AND ACCOUNTABILITY 

To provide the requisite independence, Audit and Advisory Services personnel report to the University Auditor, who is administratively responsible to the President and functionally accountable to the Business Affairs Committee of the Board of Visitors.  Any decision to terminate the University Auditor must be approved by the Business Affairs Committee. 

AUTHORITY 

The University Auditor as well as the Audit and Advisory Services staff are authorized to:  

• Have unrestricted access to all functions, records, property, and personnel. 

• Have full and free access to the President and/or the Business Affairs Committee. 

• Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives. 

• Obtain the necessary assistance of personnel in units of the university where they perform audits, as well as other specialized services from within or outside the university. 

The University Auditor as well as the Audit and Advisory Services staff are not authorized to: 

• Perform any operational duties for the university or its affiliates. 

• Initiate or approve accounting transactions external to the Office of Audit and Advisory Services. 

• Direct the activities of any university employee not employed by Audit and Advisory Services, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the audit team.  

• Develop or write policies or procedures that they may later be called upon to evaluate.  Draft materials developed by management may be reviewed for propriety and/or completeness; however, ownership of, and responsibility for these materials remains with management.

 RESPONSIBILITY  

The University Auditor as well as the Audit and Advisory Services Staff have responsibility to: 

• Develop an annual audit plan based on relative risk and submit that plan to management and the Business Affairs Committee for review and approval. 

• Implement the annual audit plan, as approved, including any special tasks or projects assigned by management and the Business Affairs Committee. 

• Maintain a professional audit staff with sufficient knowledge, skills, and experience to meet the requirements of this Charter. 

• Evaluate and assess significant merging/consolidating functions and new or changing systems, services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.

• Perform special studies, reviews,  or investigations requested by management.

• Report to appropriate levels of management significant issues related to the processes for controlling the activities of the university, including potential improvements to those processes.

• Correspond and follow up with management to ensure that corrective action is taken on findings and recommendations in the operations reviewed.

• Assist in the investigation of significant suspected fraudulent activities within the university and notify management and the Business Affairs Committee of the results.

• Consider the scope of work of the external auditors, as appropriate, for the purpose of providing optimal audit coverage to the university at a reasonable overall cost.

• Periodically provide to the Business Affairs Committee information on the status and results of the annual audit plan, the results of activities and operations reviewed, and the sufficiency of office resources.  Reports from “special request” audits may have more limited distribution. 

STANDARDS OF AUDIT PRACTICE

The Office of Audit and Advisory Services will follow the Standards for the Professional Practice of Internal Auditing and the Code of Ethics of The Institute of Internal Auditors in the performance of its activities.  Each member of the office is expected to consistently demonstrate high standards of conduct and ethics as well as appropriate judgment, independence and discretion.  Members maintain a professional image and protect auditee confidences and confidential information.

Adopted by the Business Affairs Committee of the Board of Visitors on February 17, 1999.