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> MSU Policy and Procedures > Internal Audit
100.00 Internal Audit Policy & Procedures
SECTION CONTENTS
100.00 INTERNAL AUDIT CHARTER
110.00 Mission
120.00 Independence and Accountability
130.00 Responsibility
140.00 Authority
150.00 Standards of Audit Practice
100.00 INTERNAL AUDIT CHARTER
110.00 MISSION
The mission of the Internal Audit Department is to provide independent, objective assurance and consulting services designed to add value and improve the operations of Montana State University. It helps the University accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.
For purposes of this Charter, Montana State University (University) means all campuses, entities, agencies, and affiliated organizations that report directly or indirectly to the President of Montana State University (President).
120.00 INDEPENDENCE AND ACCOUNTABILITY
To provide for the independence of the Internal Audit Department, the Director of Internal Audit, in the discharge of his/her duties, shall be directly accountable to the President. Internal Audit Department staff report to the Director of Internal Audit.
130.00 RESPONSIBILITY
The Director of Internal Audit and staff of the Internal Audit Department have responsibility to:
- Develop a flexible, risk-based annual plan of Internal Audit Department work, considering the input of management, and submit that plan and significant interim changes to the President for review and approval.
- Implement the approved annual plan, including as appropriate special projects requested by the President.
- Evaluate governance, risk management, and control of the University consistent with this Charter and with the approved annual plan. This may include evaluating significant new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.
- Provide consulting services regarding governance, risk management, and control of the University as agreed upon with management.
- Report significant issues related to governance, risk management, and control of the University, including potential improvements, and provide information concerning such issues through resolution.
- Investigate and assist in the investigation of significant suspected fraudulent activities within the University and notify the President of the results.
- Maintain a professional audit staff with sufficient knowledge, skills, and other competencies to meet the requirements of this Charter.
- Consider the scope of work of other internal and external parties, as appropriate, to help ensure proper coverage and minimize duplication of efforts.
- Coordinate with and provide oversight of other control and monitoring functions (e.g., risk management, compliance, security, legal, ethics, environmental, external audit).
- Periodically provide information to the President on Internal Audit Department activities and results relative to the annual plan, as well as the sufficiency of Department resources.
- Inform the President of significant emerging trends and successful practices in internal auditing.
These responsibilities may be in relation to all University objectives and processes, which include, but are not limited to, ensuring that:
- Risks are appropriately identified and managed.
- Significant legislative or regulatory issues impacting the University are recognized and addressed appropriately.
- Interaction with the various governance groups occurs as needed.
- Programs, plans, and objectives are achieved.
- Significant financial, managerial, and operating information is accurate, reliable, and timely.
- Compliance with applicable laws, regulations, standards, policies, procedures, and other requirements.
- Resources are acquired economically, used efficiently, and adequately protected.
- Quality and continuous improvement are fostered in control of the University.
Opportunities for improving the University may be identified by the Internal Audit Department. They will be communicated to the appropriate levels of management.
140.00 AUTHORITY
The Director of Internal Audit and staff of the Internal Audit Department are authorized to:
- Have unrestricted access to all functions, records, property, and personnel.
- Have full and free access to the President.
- Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to fulfill its mission and responsibilities.
- Obtain the necessary assistance of personnel in units/functions of the University where they provide services, and obtain other specialized services from within or outside the University.
The Director of Internal Audit and staff of the Internal Audit Department are not authorized to:
- Perform any operational duties for the University.
- Make management decisions external to the Internal Audit Department. University management has primary responsibility for control of the University.
- Initiate or approve fiscal transactions external to the Internal Audit Department.
- Direct the activities of any University employee not employed by the Internal Audit Department, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors.
150.00 STANDARDS OF AUDIT PRACTICE
The Internal Audit Department is guided by the Code of Ethics and will meet or exceed the Standards for the Professional Practice of Internal Auditing of The Institute of Internal Auditors.
Revision approved by President Gamble April 14, 2008
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