玉米视频

Purpose 

The purpose of the internal audit function is to strengthen the University of 玉米视频’s (University’s) ability to create, protect, and sustain value by providing the Audit, Risk and Compliance Committee (Audit Committee) and management with independent, risk-based, and objective assurance, advice, insight, and foresight.

The internal audit function, Internal Audit and Advisory Services (IAAS) enhances the University's:

• Successful achievement of its objectives.
• Governance, risk management, and control processes.
• Decision-making and oversight.
• Reputation and credibility with its stakeholders.
• Ability to serve the 玉米视频 interest.

IAAS is most effective when:

• Internal auditing is performed by competent professionals in conformance with the IIA’s Global Internal Audit Standards, which are set in the 玉米视频 interest.
• The internal audit function is independently positioned with direct accountability to the Audit Committee.
• Internal auditors are free from undue influence and committed to making objective assessments.

Commitment to Adhering to the Global Internal Audit Standards

The University’s internal audit function will adhere to the mandatory elements of The Institute of Internal Auditors' International Professional Practices Framework, which are the Global Internal Audit Standards and Topical Requirements. The chief audit executive will report periodically to the Audit Committee and senior management regarding the internal audit function’s conformance with the Standards, which will be assessed through a quality assurance and improvement program.

Mandate 

Authority

The Audit Committee grants the internal audit function the mandate to provide the Audit Committee and senior management with objective assurance, advice, insight, and foresight.

The internal audit function’s authority is created by its direct reporting relationship to the Audit Committee. Such authority allows for unrestricted access to the Audit Committee and board.

The Audit Committee authorizes the internal audit function to:

• Have full and unrestricted access to all functions, data, records, information, physical property, and personnel pertinent to carrying out internal audit responsibilities. (the University Technology Development Corporation and its entities, UNeHealth and NSRI Classified Task Orders and related activity are not in the scope/audit universe). Internal auditors are accountable for confidentiality and safeguarding records and information.
• Allocate resources, set frequencies, select subjects, determine scopes of work, apply techniques, and issue communications to accomplish the function’s objectives.
• Obtain assistance from the necessary personnel of the University and other specialized services from within or outside the University to complete internal audit services.

Independence, Organizational Position, and Reporting Relationships

The Director of Internal Audit and Advisory Services (chief audit executive or CAE) will be positioned at a level in the University that enables internal audit services and responsibilities to be performed without interference from management (, thereby establishing the independence of the internal audit function. The chief audit executive will report functionally to the Audit Committee and administratively (for example, day-to-day operations) to the President. This positioning provides the organizational authority and status to bring matters directly to senior management and escalate matters to the Audit Committee, when necessary, without interference and supports the internal auditors’ ability to maintain objectivity.

The CAE will confirm to the Audit Committee, at least annually, the organizational independence of the internal audit function. If the governance structure does not support organizational independence, the chief audit executive will document the characteristics of the governance structure limiting independence and any safeguards employed to achieve the principle of independence. The chief audit executive will disclose to the Audit Committee any interference internal auditors encounter related to the scope, performance, or communication of internal audit work and results. The disclosure will include communicating the implications of such interference on the internal audit function’s effectiveness and ability to fulfill its mandate.

Changes to the Mandate and Charter

Circumstances may justify a follow-up discussion between the chief audit executive, the Audit Committee, and senior management on the internal audit mandate or other aspects of the internal audit charter. Such circumstances may include but are not limited to:

• A significant change in the Global Internal Audit Standards.
• A significant acquisition or reorganization within the organization.
• Significant changes in the chief audit executive, Audit Committee, and/or senior management.
• Significant changes to the organization’s strategies, objectives, risk profile, or the environment in which the organization operates.
• New laws or regulations that may affect the nature and/or scope of internal audit services.

Chief Audit Executive Roles and Responsibilities

Ethics and Professionalism

The chief audit executive will ensure that internal auditors:

• Conform with the Global Internal Audit Standards, including the principles of Ethics and Professionalism: integrity, objectivity, competency, due professional care, and confidentiality.
• Understand, respect, meet, and contribute to the legitimate and ethical expectations of the organization and be able to recognize conduct that is contrary to those expectations.
• Encourage and promote an ethics-based culture in the organization.
• Report organizational behavior that is inconsistent with the organization’s ethical expectations, as described in applicable policies and procedures.

Objectivity

The chief audit executive will ensure that the internal audit function remains free from all conditions that threaten the ability of internal auditors to carry out their responsibilities in an unbiased manner, including matters of engagement selection, scope, procedures, frequency, timing, and communication. If the chief audit executive determines that objectivity may be impaired in fact or appearance, the details of the impairment will be disclosed to appropriate parties.

Internal auditors will maintain an unbiased mental attitude that allows them to perform engagements objectively such that they believe in their work product, do not compromise quality, and do not subordinate their judgment on audit matters to others, either in fact or appearance.

Internal auditors will have no direct operational responsibility or authority over any of the activities they review. Accordingly, internal auditors will not implement internal controls, develop procedures, install systems, or engage in other activities that may impair their judgment, including:

• Assessing specific operations for which they had responsibility within the previous year.
• Performing operational duties for the University or its affiliates.
• Initiating or approving transactions external to the internal audit function.
• Directing the activities of any University employee that is not employed by the internal audit function, except to the extent that such employees have been appropriately assigned to internal audit teams or to assist internal auditors.

Internal auditors will:

• Disclose impairments of independence or objectivity, in fact or appearance, to appropriate parties and at least annually, such as the chief audit executive, Audit Committee, management, or others.
• Exhibit professional objectivity in gathering, evaluating, and communicating information.
• Make balanced assessments of all available and relevant facts and circumstances.
• Take necessary precautions to avoid conflicts of interest, bias, and undue influence.

Managing the Internal Audit Function

The chief audit executive has the responsibility to:

• At least annually, develop a risk-based internal audit plan that considers the input of the Audit Committee and senior management. Discuss the plan with the Audit Committee and senior management and submit the plan to the Audit Committee for review and approval.
• Communicate the impact of resource limitations on the internal audit plan to the Audit Committee and senior management.
• Review and adjust the internal audit plan, as necessary, in response to changes in the University’s business, risks, operations, programs, systems, and controls.
• Communicate with the Audit Committee and senior management if there are significant interim changes to the internal audit plan.
• Ensure internal audit engagements are performed, documented, and communicated in accordance with the Global Internal Audit Standards.
• Follow up on engagement findings and confirm the implementation of recommendations or action plans and communicate the results of internal audit services to the Audit Committee and senior management periodically and for each engagement as appropriate.
• Ensure the internal audit function collectively possesses or obtains the knowledge, skills, and other competencies needed to meet the requirements of the Global Internal Audit Standards and fulfill the internal audit mandate.
• Identify and consider trends and emerging issues that could impact the University and communicate to the Audit Committee and senior management as appropriate.
• Consider emerging trends and successful practices in internal auditing.
• Establish and ensure adherence to methodologies designed to guide the internal audit function.
• Ensure adherence to the University’s relevant policies and procedures unless such policies and procedures conflict with the internal audit charter or the Global Internal Audit Standards. Any such conflicts will be resolved or documented and communicated to the Audit Committee and senior management.
• Coordinate activities and consider relying upon the work of other internal and external providers of assurance and advisory services. If the chief audit executive cannot achieve an appropriate level of coordination, the issue must be communicated to senior management and if necessary escalated to the Audit Committee.

Communication with the Board and Senior Management

The chief audit executive will report periodically to the Audit Committee and senior management regarding:

• The internal audit function’s mandate.
• The internal audit plan and performance relative to its plan.
• Internal audit budget.
• Significant revisions to the internal audit plan and budget.
• Potential impairments to independence, including relevant disclosures as applicable.
• Results from the quality assurance and improvement program, which include the internal audit function’s conformance with The IIA’s Global Internal Audit Standards and action plans to address the internal audit function’s deficiencies and opportunities for improvement.
• Significant risk exposures and control issues, including fraud risks, governance issues, and other areas of focus for the Audit Committee.
• Results of assurance and advisory services.
• Resource requirements.
• Management’s responses to risk that the internal audit function determines may be unacceptable or acceptance of a risk that is beyond the University’s risk appetite.

Quality Assurance and Improvement Program

The chief audit executive will develop, implement, and maintain a quality assurance and improvement program that covers all aspects of the internal audit function. The program will include external and internal assessments of the internal audit function’s conformance with the Global Internal Audit Standards, as well as performance measurement to assess the internal audit function’s progress toward the achievement of its objectives and promotion of continuous improvement. The program also will assess, if applicable, compliance with laws and/or regulations relevant to internal auditing. Also, if applicable, the assessment will include plans to address the internal audit function’s deficiencies and opportunities for improvement.

Annually, the chief audit executive will communicate with the Audit Committee and senior management about the internal audit function’s quality assurance and improvement program, including the results of internal assessments (ongoing monitoring and periodic self-assessments) and external assessments. External assessments will be conducted at least once every five years by a qualified, independent assessor or assessment team from outside the University; qualifications must include at least one assessor holding an active Certified Internal Auditor® credential.

Scope and Types of Internal Audit Services

The scope of internal audit services covers the entire breadth of the organization, including all of the University’s activities, assets, and personnel. The scope of internal audit activities also encompasses but is not limited to objective examinations of evidence to provide independent assurance and advisory services to the Audit Committee and management on the adequacy and effectiveness of governance, risk management, and control processes for the University.

The nature and scope of advisory services may be agreed with the party requesting the service, provided the internal audit function does not assume management responsibility. Opportunities for improving the efficiency of governance, risk management, and control processes may be identified during advisory engagements. These opportunities will be communicated to the appropriate level of management.

Internal audit engagements may include evaluating whether:

• Risks relating to the achievement of the University’s strategic objectives are appropriately identified and managed.
• The actions of the University’s officers, directors, management, employees, and contractors comply with the University’s policies, procedures, and applicable laws, regulations, and governance standards.
• The results of operations and programs are consistent with established goals and objectives.
• Operations and programs are being carried out effectively and efficiently.
• Established processes and systems enable compliance with the policies, procedures, laws, and regulations that could significantly impact the University.
• The integrity of information and the means used to identify, measure, analyze, classify, and report such information is reliable.
• Resources and assets are acquired economically, used efficiently and sustainably, and protected adequately.

Management's Responsibilities 

Management is responsible for ensuring that systems of internal control are in place; good business practices are implemented and followed in all areas; compliance with federal, State, and University policies, laws, and regulations is maintained; fraud risks are identified and mitigated; and effective governance is established. This provides assurance that financial information and other management information are reliable, that University resources are used efficiently and effectively, and that the potential for fraud is minimized.

Management shall provide a written response to report recommendations issued within time frames requested by IAAS. Management is responsible for addressing issues identified by implementing recommendations or agreed-upon corrective action plans, and by providing updates to the Audit Committee using the Audit Recommendations Tracking Document.

Working Papers and Reports

All internal audit personnel have the responsibility for maintaining records as follows:

All internal audit reports, once accepted by the Audit Committee, shall be maintained in accordance with University Records Retention policies. Working papers and other audit files maintained by IAAS are privileged and confidential and may be withheld in response to a 玉米视频 records request. The information contained in working papers and audit files prepared pursuant to a specific audit is not subject to disclosure except to a county attorney, the 玉米视频 Attorney General, or University General Counsel in connection with an investigation made or action taken in the course of the official duties of the county attorney, the 玉米视频 Auditor of Public Accounts, or the Legislative Performance Audit Committee. University units being audited, and the federal agencies that have awarded grants to such units, shall also have access to the relevant working papers and audit files. For purposes of this subsection, working papers means those documents containing evidence to support the IAAS’s findings, opinions, conclusions, and judgments and includes the collection of evidence prepared or obtained by the auditor during the audit. The University may make the working papers available for purposes of a quality assurance review as required by the Global Internal Audit Standards.

Approved by the Audit Committee at its meeting on June 19, 2024