INTERNAL AUDIT CHARTER

Introduction

Internal auditing is an independent appraisal function within EasternWashingtonUniversity which reviews accounting, financial, and other operations as a service to management. Internal Audit provides assistance to the Board of Trustees and all members of management, in the efficient and effective discharge of their responsibilities.

Internal Audit provides the Board of Trustees, President, Vice President for Business and Finance, Chief Financial Officer and appropriate management with the following:

  • Appraisal of University operations and activities.
  • Independent and confidential advice regarding action to improve the University’s effectiveness, efficiency and economy in the use of resources.
  • Progress reports regarding action taken by management.

Independence

Internal Audit is independent within the University and as such the following applies:

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  • Responsible on a day to day basis to the Chief Financial Officer.
  • Report on a quarterly basis to the VP for Business and Finance and the President.
  • Have direct access to the Board of Trustees, if necessary.
  • Have no executive or managerial powers, authorities, functions or duties except those relating to the management of the internal audit function.
  • Is not responsible for detailed development or implementation of new systems, but should be consulted before such development to enable assessment of the adequacy of planned controls.
  • Is not involved in the day to day internal checking system in the University.

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Responsibilities and Authorities

Internal Audit has the responsibility to serve EasternWashingtonUniversity in a manner that is consistent with the Standards for the Professional Practice of Internal Auditing and with professional standards of conduct such as the Code of Ethics of the Institute of Internal Auditors, Inc.

Internal Audit has no authority over, or responsibility for, the activities to be audited. Audit review and appraisal does not relieve other persons of responsibilities assigned to them.

The Internal Auditor has the authority to:

  • Conduct audits in accordance with the approved internal audit plan.
  • Have access to relevant information and property of the University at all times
  • Have discussions with managers and staff of the University at all times.

Scope and Objectives

Internal Audit will recommend a proactive program of audits, which will focus on the following elements:

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  • Appraisal of adequacy of internal controls and operating procedures.
  • Review of controls for cost effectiveness and relevance to the current operating environment.
  • Review of the reliability and integrity of financial and operating information
  • Determine compliance with regulatory or contractual requirements as necessary.
  • Determine procedures are adequate to prevent or detect fraud, theft or misappropriation.
  • Determine whether appropriated funds are used efficiently and for the intended purposes.
  • Review of operations or programs to ascertain whether results are consistent with established objectives and goals of the University.

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Activities

The Director of Internal Audit will report the results of audits to the appropriate levels of university management and where relevant, to the Chief Financial Officer, Vice President of Business and Finance, President or Board of Trustees, at the conclusion of each audit.

The Director of Internal Audit has the right and responsibility to report to the Board of Trustees any circumstances that are significant violations of University controls, policies, or procedures or any other matter that the Director determines is of sufficient importance to warrant Board of Trustees notification.

Relationships

Internal Audit will act as a liaison for external auditors and coordinates the University’s audit responses and requirements.

Approved by the Board of Trustees 5/19/00 Motion #05-04-00

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