The role of Internal Audit is defined by the Audit Charter which is contained in the OU Regents’ Policy Manual and is reproduced in full below. The Charter defines the purpose of the audit office, gives authority to conduct audits and defines areas of responsibility. The Charter also defines others’ responsibilities for providing access and cooperation during audits or other reviews.
Audit Charter
Purpose
Internal auditing is an independent appraisal activity established within the organization to examine and evaluate its activities. The objectives of internal auditing are to assist members of the organization in the effective discharge of their responsibilities by furnishing them with analysis, appraisals, recommendations and pertinent comments concerning the activities reviewed. However, the internal audit review and appraisal of an area shall not in any way relieve management of its assigned responsibilities.
Authority
Oklahoma law provides that the Board of Regents shall establish an internal audit function that employs a sufficient number of internal auditors to meet the Board of Regents’ fiduciary responsibilities. The internal audit function shall be responsible to the Board of Regents and the President and shall be conducted in accordance with “Standards for the Professional Practice of Internal Auditing.” The President and all members of the Board of Regents shall receive copies of the audit reports, as will the State Auditor and Inspector. The Board of Regents shall, at least annually, review and prescribe the plan of work to be performed by the internal auditors.
The Internal Audit Director at the University of Oklahoma is authorized by the Board of Regents to direct a broad, comprehensive program of internal auditing throughout the University. The University Internal Audit Department will evaluate the adequacy of the internal control structure. In order to accomplish these objectives, the Internal Audit Director and the Internal Audit Staff are authorized by the President and the Board of Regents to have full, free, and unrestricted access to all University functions, records, property, and personnel. In the event any officer, agent, or employee of the University shall fail to cooperate fully with the Internal Audit Director or shall otherwise hinder or prevent or attempt to hinder or prevent any audit, the Internal Audit Director shall immediately and simultaneously report the same to the President and to the Board of Regents’ Finance and Audit Committee.
The position of Internal Audit Director is a staff position without authority or direct control over those units being reviewed. In this connection, the University Internal Audit Staff will not install procedures, originate or approve entries, or otherwise engage in any activity that they will subsequently be expected to review or appraise.
The Internal Audit Director is responsible to the Board of Regents and the Presidents of the Universities for all of the internal auditing efforts throughout the Universities. This includes those efforts on the Norman Campus, the Health Sciences Center Campus, and the Norman Campus and Health Sciences Center Campus functions in Tulsa, Cameron University, Rogers State University, and at any other locations for which the Board of Regents has responsibility. With the advice of the Presidents, the Internal Audit Director shall be appointed and terminated by the Board of Regents and the President.
Responsibilities
The Internal Audit Department shall execute a comprehensive program to ensure all activities of the University are reviewed at appropriate intervals, as determined by the Internal Audit Director and the Board of Regents’ Finance and Audit Committee. An annual audit plan shall be prepared and submitted to the Board of Regents each year for review and approval.
The Internal Audit Department shall review and evaluate systems of control and the quality of ongoing operations, recommend action to correct any deficiencies, and follow-up on management’s response to assure that corrective action is taken on a timely basis. Annually the Internal Audit Director shall report on the adequacy of the internal control structure for the University.
The Internal Audit Department shall appraise the quality of management performance in terms of compliance with policies, plans, procedures, laws, and regulations.
The Internal Audit Department shall identify operational opportunities for improvement in performance by appraising functional effectiveness against industry standards and sound business practices.
University employees have a duty to report instances of suspected fraud to the Internal Audit Department. The Internal Audit Department will coordinate internal investigations of suspected fraud with the appropriate University officials (e.g., Office of Legal Counsel, Campus Police, University officers, the Compliance Office, and/or departmental personnel).
The Internal Audit Department shall conduct special reviews and consulting services as directed by the Presidents and Board of Regents. Special reviews and consulting services requested by departmental management may be performed at the discretion of the Internal Audit Director. Care should be taken as to retain independence and avoid conflicts of interest when performing consulting services. Consulting services include, but are not limited to, assistance in the implementation of new computer systems and the compliance with new laws and regulations. As part of an implementation team, internal auditors may serve as non-voting members on related steering committees.
The Internal Audit Director shall ensure that written reports are prepared for each internal audit and that such reports are furnished to appropriate administrative personnel and the Executive Officers responsible for the audited activity. All completed internal audits shall be submitted to the President, filed with the Vice President for University Governance as soon as completed, and provided to all Regents. The Board of Regents shall have the opportunity to discuss any report with the Internal Audit Director.
The Internal Audit Department shall evaluate the adequacy of management’s corrective action and perform necessary follow-up procedures to ensure that the corrective action has been implemented.
The Internal Audit Director shall report at each regular meeting of the Board of Regents on any condition that, in the judgment of the Director, could adversely affect the University. Suspected theft, fraud, or misuse of funds will be reported to the Board of Regents’ Finance and Audit Committee.
The Internal Audit Department shall submit quarterly activity reports to the Board of Regents’ Finance and Audit Committee that summarize audit findings and trends.
The Internal Audit Department shall serve as facilitator and coordinator for all federal, state, and other external audit agencies. All external audit agencies shall contact the Internal Audit Director for all entrance and exit audit conferences.
The Internal Audit Director will have the responsibility for the direction, personnel, budget, and day-to-day operation of the internal audit function.
Professional Standards
Internal Auditors perform their audit work in accordance with gennerally accepted auditing standards as outlined by the Institute of Internal Auditors and the American Institute of Certified Public Accountants
Institute of Internal Auditors
American Institute of Certified Public Accountants