Use the links below to read each section of the charter.
- Mission of Internal Audit/The Internal Audit Charter
- Responsibility of Internal Audit function at Western Carolina University
- Authorization
- Reporting and Accountability
- Audit Standards
- Independence
Mission of Internal Audit/The Internal Audit Charter
The Charter defines the Office of Internal Audit’s purpose, authority and responsibility. It also establishes Internal Audit’s position within the organization, authorizes Internal Audit’s access to records, personnel, and physical properties relevant to the performance of engagements, and defines the scope of Internal Audit activities. It is approved by the Chancellor and the Board of Trustees.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the university’s operations. Therefore the Office of Internal Audit’s primary goal is to help the University accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. The scope of work of the Office of Internal Audit is to determine whether the organization’s network of risk management, control and governance processes, as designed and represented by management, are adequate and functioning in a manner to ensure that:
- Internal controls are adequate and effective and that quality and continuous improvements are fostered in the University’s control process to promote operational efficiency and safeguarding of the assets of the University.
- Significant financial, managerial and operating information is accurate, reliable and timely.
- Departments and employees are in compliance with internal and external policies, procedures and regulations.
- Fraud, waste and abuse is prevented or adequately addressed if it occurs.
- Areas of risk are identified, minimized and appropriately addressed.
- Best business practices are utilized at Western Carolina University.
- University programs, plans and objectives are achieved.
Responsibilities of Internal Audit function at Western Carolina University
The Director of Internal Audit and staff are responsible for:
- Developing an annual audit plan using a risk-based methodology. Development of the audit plan will be based on significant risks or control concerns identified by the Chancellor, Board of Trustees, University management and the professional judgment of the Internal Audit staff. The plan will be submitted to the Board of Trustees and the Board of Governors for review and approval.
- Implementing the approved audit plan, including as appropriate any special tasks or projects requested by the Chancellor, the Board of Trustees or the State Auditor.
- Maintaining a professional audit staff with sufficient knowledge, skills, experience and professional certifications to meet the requirements of the charter.
- Evaluating and assessing changes in functions or services, processes, operations and control processes coincident with their development, implementation and/or expansion.
- Issuing quarterly reports to the Chancellor and the Board of Trustees summarizing results of audit activities.
- Keeping the Chancellor and the Board of Trustees, through the Administration, Finance and Audit Committee, informed of emerging trends and successful practices in internal auditing.
- Assisting or conducting the investigation of suspected fraudulent activities within the University and notifying the Chancellor and the Board of Trustees through the Administration, Finance and Audit Committee of the results.
- Considering the scope of work of the external auditors and regulators, as appropriate, for the purpose of providing optimal audit coverage to the organization.
- Identifying potential conflict of interests and mitigating potential problems regarding these conflicts.
- Coordinating all external audits of the University.
The Office of Internal Audit is authorized by the Chancellor and the Board of Trustees to have unrestricted access to all University offices/departments/functions, records (electronic or manual), physical properties and personnel. The Internal Auditor shall also have access to persons and records as a result of all contracts or grants entered into by Western Carolina University in accordance with General Statute 147-64.7 and Session Law 2010-194, Section 21. It also has the authority to identify areas of risk, address fraud, waste and abuse issues and to assist management in the development of best business practices.
Reporting and Accountability
The Office of Internal Audit shall be accountable to the Board of Trustees through the Finance and Audit Committee and to the Chancellor. The Office of Internal Audit will provide copies of audit reports to the Chancellor, University management, members of the Finance and Audit Committee, the North Carolina Office of Internal Audit and an annual summary report to the Board of Governors.
The Office of Internal Audit intends to meet or exceed the International Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors. Guidelines from the Association of College and University Auditors and the National Association of College and University Business Officers are also followed in internal audits and reviews.
The Office of Internal Audit should be free from interference in determining the scope of internal auditing, performing work and communicating results. To provide for the independence of the Office of Internal Audit, its personnel report to the Director of Internal Audit, who reports to the Administration, Finance and Audit Committee and the Chancellor. Objectivity and independence are crucial to the duties of Internal Audit. Either may be compromised if auditors participate directly in preparing records/accounting transactions, designing systems and operations or directing activities of any organization employee not employed by the Office of Internal Audit. Therefore, the Internal Audit staff will serve only in an advisory capacity regarding these matters.