Internal Audit Charter
Internal Auditing and Advisory Services is an independent, objective assurance and consulting activity designed to add value to Bowling Green State University (“BGSU”) operations. It assists BGSU in accomplishing its objectives by bringing a systemic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Scope of Work
Internal Auditing and Advisory Services will complete risk-based assurance or consulting reviews of the BGSU operations, and provide the results of those reviews to management and the Audit Committee. Although individual reviews will vary in duration and scope, each review will relate to the broad system of internal controls and its sufficiency to ensure:
- Achievement of organizational goals and objectives.
- Reliability of financial and operating information.
- Safeguarding of assets.
- Resources are acquired economically, used efficiently, and adequately protected.
- Significant legislative or regulatory requirements are recognized and addressed appropriately.
The Director, Internal Audit and Advisory Services (“Director”), is accountable to management and the Audit Committee to complete the duties outlined in the Responsibility section below in accordance with University policies. The Director will have no executive or managerial power, functions, or duties except those relating to the management of the Internal Audit and Advisory Services department, and will not be involved in the day-to-day operations of the University.
The Director reports functionally to the Audit Committee and administratively to the President and to the Vice President for Finance and Administration. All staff within the Internal Audit and Advisory Services department report directly to the Director.
Authority and Independence
The Director and the Internal Audit and Advisory Services staff are authorized to:
- Have full, free and unrestricted access to all University property, personnel, and records, except for those records that are legally privileged or otherwise protected by law ("Protected Materials"). In the event that the Director is of the opinion that Protected Materials are needed in the performance of the Scope of Work described above, and the General Counsel does not agree to the release of the Protected Materials, the Director may present the matter to the Audit Committee for such deliberation and/or resolution as the Audit Committee may deem appropriate.
- Have full and free access to the Audit Committee.
- Allocate resources, set frequencies, select subjects, determine scope of work, and apply the techniques required to accomplish audit objectives.
Documents and information given to the Internal Audit staff will be handled in the same prudent and confidential manner as those employees normally accountable for them.
To support the Purpose and Scope of Work identified, the Director (or designated staff) will perform the following duties:
- Complete an annual risk-assessment with input from BGSU management. Develop an audit plan that is aligned to the risk-assessment, consistent with existing resources, and flexible for change. Present the plan to the Audit Committee, the President, and the Vice President for Finance and Administration for approval.
- Implement the annual audit plan, as approved, including any appropriate special reviews requested by BGSU management and the Audit Committee.
- Participate in manual and automated systems development processes to advise upon effective internal controls.
- Investigate reported occurrences of fraud, embezzlement, theft, waste, or unusual activity, and recommend controls to prevent or detect such occurrences. Assist in investigation of significant suspected fraudulent activities when requested.
- Prepare written audit reports, when appropriate, on the results of audit engagements, including any recommendations for improvement.
- Monitor and confirm appropriate resolution of control deficiencies (“findings”) by logging all findings identified and tracking through closure according to the Major Finding definition and Corrective Action Follow-up process.
- Issue periodic reports to the Audit Committee and management summarizing the results of the audit activities and the status of corrective actions.
- Communicate with external audit related to the development of the annual audit plan and opportunities to leverage coverage of BGSU risks.
- Maintain sufficient knowledge, skills, experience and professional certification (through training, recruiting, or outsourcing) to meet the requirements of this charter.
- Keep Audit Committee and
management informed of emerging trends and successful practices in
Audit Standards and Ethics
All audit work will be performed in accordance with the International Standards for the Professional Practice of Internal Auditing as advocated by the Institute of Internal Auditors (IIA). Members of the Internal Audit and Advisory Services department staff have the responsibility to uphold the principles of integrity, objectivity, confidentiality, and competence outlined in the IIA Code of Ethics, as well as to conduct themselves in accordance with all BGSU policies and procedures.
The Director should establish and maintain a quality assurance
program to evaluate the operations of the Internal Auditing and
Advisory Services Department. The purpose of this program is to
provide reasonable assurance that this charter is being followed,
including that audit work conforms to the identified Audit Standards.
A quality assurance program includes training, supervision, internal
reviews and external reviews. Other qualified internal auditors who
are independent of the organization may perform external reviews of