This charter provides the broad parameters with impact on the accountability and standards of the Internal Audit Internal Audit employs a systematics and disciplined approach in helping the Ministry to accomplish its objectives. This is achieved by evaluating and improving the effectiveness of risk management, control and goverance processes.
To provide an independent appraisal of all the activities of Ministry of Finance and the Public Service, its Departments and Agencies, with the aim of to add value, improve operational efficiency, risk management and internal control systems.
The prime objective of Audit Unit is to examine and evaluate whether the Ministry’s frame work of risk management, control, and governance processes, is adequate and functional. Additionally, the objectives of the Internal Audit Unit include advising and recommending improvements in internal control and risk management systems to senior management.
Scope of work
The scope of internal audit work includes the review of risk management procedures, internal control systems, information systems and governance processes. This work also involves periodic testing of transactions, best practice reviews, special investigations and appraisals of regulatory requirements
In order to fulfil its responsibilities, Internal Audit shall:
- Identify and assess potential risks to the Ministry’s operations.
- Review the application and effectiveness of risk management procedures and risk assessment methods at various operations and activities of the Ministry.
- Review of the accuracy and reliability of the Ministry’s accounting records and financial reports.
- Test both transactions and functions of specific internal control procedures at various Ministry Departments and Agencies.
- Evaluate the effectiveness of existing policies and procedures and where appropriate, make recommendations.
- Review the adequacy of controls established to ensure compliance with policies, plans, procedures, and business objectives.
- Assess the means of safeguarding assets.
- Appraise the use of resources with regard to economy, efficiency and effectiveness.
- Identify opportunities for cost savings and making recommendations for improving cost efficiencies.
- Follow up on recommendations to make sure that effective remedial action is taken.
- Conduct special investigations, appraisals or reviews requested by the Financial Secretary and the Audit Committee
When conducting assignments the Internal Audit Unit personnel will have the following authorities:
- To determine areas subject to audit as well as audit scope, the allocation of resources and audit techniques to be utilised in achieving internal audit objectives.
- Unrestricted access to all of the Ministry’s offices, records, information and personnel considered necessary for the performance of its functions.
- To require all members of staff and Management to supply such information and explanations as may be needed within a reasonable period of time.
- The right to communicate directly with all levels of staff and management in order to discharge the Unit’s responsibilities.
Internal Audit aims to promote effective controls at reasonable cost. To achieve this, Internal Audit is authorised, in the course of its activities, to:
- Effectively manage the work of the Unit to ensure that it adds value to the Ministry.
- Follow the guidelines and methods given in the Internal Audit Manual
- Ensure that internal audit assignments are performed with proficiency and due professional care.
- Maintain integrity and objectivity
- Liaise with the External Auditor to foster a co-operative and professional working relationship and optimise audit coverage.
- Submit quarterly reports to the Financial Secretary and the Audit Committee reflecting the results of audit work performed, and reporting on the results of corrective actions taken by management to address matters arising in previous audit reports.
- Submit an Annual Internal Audit Work Plan based on the results of Risk Assessment identified in the Ministry. After consultation with management, submit to the Financial Secretary and the Audit Committee for review and approval.
- To maintain the independence of audit unit its staff shall report to the Chief Internal Auditor (CIA), who shall report administratively to the Financial Secretary and functionally to the Audit Committee.
- The Internal Audit Unit shall be independent of the activities to be audited.
- Internal Audit Unit shall exercise its assignment on its own initiative throughout the Ministry, its Department and Agencies.
- The Chief Internal Auditor (CIA) shall be authorised to communicate directly, and on her own initiative, to the members of the Audit Committee.
- The internal audit function shall be subject to an independent review by the Internal Audit Directorate as and when required.
In accordance with the Related Standard: 1210 – Internal auditors should possess the knowledge, skills, and other competencies needed to perform their individual responsibilities. The internal audit activity collectively should possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.
- Each internal auditor should possess certain knowledge, skills, and other competencies:
- Proficiency in applying internal auditing standards, procedures, and techniques is required in performing engagements.
- Proficiency in accounting principles and techniques when working extensively with financial records and reports.
- An understanding of management principles to enable prompt recognition of the materiality and significance of deviations from good business practices.
- Internal auditors must be proficient communicators - both orally and in written form - to be able to clearly and effectively convey information as it relates to the objectives, evaluations, conclusions and recommendations of the audit exercise.
- Internal auditors must be effective in engaging and maintaining satisfactory relationships with clients.
Sharon Anderson (Mrs.) Dr. Wesley Hughes
Chief Internal Auditor Financial Secretary