CHINHOYI UNIVERSITY OF TECHNOLOGY

 

Internal Audit Charter

Introduction

The purpose of this charter is:

to establish the Internal Auditing function within the University, to authorize its access to records, personnel, and physical properties relevant to the performance of audits; and to define the nature, objective and scope of internal auditing activities.

Nature of Internal Control and Internal Auditing

Internal control is the responsibility of every member of the University community. It is a process, effected by the University Council, University leadership, and others, designed to provide reasonable assurance of:

effective and efficient operations; reliable financial data; safeguarding of assets, and compliance with applicable laws and regulations.

The required reasonable assurance exists when all the components of management control, i.e. the control environment; risk assessment processes; control activities; information and communication systems; and monitoring activities, are present and operate effectively. Internal auditing is an independent, objective assurance and consulting activity that is established within the University as an integral part of its risk management, control and governance processes. It assists the University leadership in accomplishment of objectives by assessing the state of internal control. In that regard, internal auditing:

Helps the University community understand and assess risk; Evaluates the adequacy of techniques to manage risk; Provides an assessment of the level of comfort that risk management, control and governance processes are operating effectively and efficiently; and Identifies and recommends changes that add value.

Through these assurance and consultative activities, internal auditing helps the University leadership accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
 

Objective of Internal Auditing

The objective of internal auditing is to assist the University community in the effective discharge of its control responsibilities and duties. To this end, internal auditing furnishes analyses, appraisals, recommendations, counsel, and information regarding the state of internal control. The auditing objective includes promoting effective control at reasonable cost.
 

Scope of Internal Auditing

The scope of internal auditing encompasses the examination and evaluation of the adequacy and effectiveness of the system of internal control.
  Internal auditing seeks to answer one or more of the following risk focused questions:

Do controls over operations provide the University leadership with reasonable assurance that operations and programs are being carried out as planned, and that results of operations are consistent with established goals and objectives. Do controls over operations provide the University leadership with reasonable assurance that resources are used efficiently and economically.

In this context, internal auditing evaluates;
 

whether operating standards have been established for measuring economy and efficiency; whether operating standards are understood and are being met; whether deviations from operating standards are identified, analysed and communicated to those responsible for corrective action; and whether effective corrective action has been taken. Do controls over assets provide the University leadership with reasonable assurance that assets are protected against loss that could result from fire, theft, other improper or illegal activities, or exposure to the elements. Do controls over compliance with policies, procedures, plans, laws, statutes, ordinances and regulations provide the University leadership with reasonable assurance that proper compliance actually occurs. Do controls over financial and operating data provide the University leadership with reasonable assurance that such data is accurate and reliable.

The Chief Internal Auditor is assigned the responsibility for carrying out an auditing program. This responsibility includes coordinating internal auditing activities with others so as to best achieve objectives and goals. In carrying out this mission, the Chief Internal Auditor is given full, free and unrestricted access to all functions, activities, operations, relevant records, personnel, and physical properties in order to discharge his/her responsibilities. It is expected that the Chief Internal Auditor will exercise discretion to ensure the confidentiality of all the matters that come to his/her attention.
Internal Auditing is a staff function that has no direct authority over the activities that its personnel review. The performance of these reviews does not relieve management of any assigned responsibilities. Objectivity is essential to the audit staff in the proper fulfilment of their duties. Performance of line responsibilities by Internal Auditors may compromise their objectivity.
Upon the completion of an audit, the Chief Internal Auditor will discuss the results with the Head of Department responsible for the area evaluated. A report of results and the Head of Department's proposed course of action will be sent by the Chief Internal Auditor to the Vice-Chancellor for information, monitoring and follow-up. A copy of the report should be sent to the Internal Audit Committee and the external auditors.
The Chief Internal Auditor will submit annually to the Vice-Chancellor, for comments, and to the Internal Audit Committee, for approval, a summary of the audit work schedule and audit results.