Department of Internal Audit - Charter

The Internal Audit Department assists the Board of Trustees and University management by providing an independent appraisal function which assures the protection and safeguarding of the assets and the good name of Central Washington University. Internal Audit is an integral part of the agency and an important component of the management control system, measuring and evaluating the effectiveness of all other controls.

The objective of Internal Audit is to assist management in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations and pertinent comments resulting from the audit process. Internal Audit is concerned with any aspect of an organization's work in which it may be of audit service to management.

The Director of Internal Audit reports to the President to permit the rendering of impartial and unbiased judgment essential to the proper conduct of audits. The Director shall have no direct or indirect responsibilities for the programs or operations audited.

Internal Audit is responsible for appraising controls, activities, operations or transactions for conformance to policies and regulations, and for evaluating effectiveness, economy and methods of operation. In addition, Internal Audit may provide consulting services within the university concerning issues related to internal controls, special investigations, and other areas of interest and concern. To accomplish this responsibility, all Central Washington University activities are subject to audit. Furthermore, Internal Audit is authorized to have full access to all records, computer files, properties, and personnel relevant to any subject under review. The Director shall systematically develop an annual audit plan. The objective of the plan is to ensure that all subjects of material significance to the University are accorded audit consideration on an appropriate basis.

The plan and the results of the audit activities shall be reported to the Board of Trustees annually.

The scope of each audit shall be sufficient to express an informed opinion about the audit subject. An audit report shall be issued promptly for each examination and be directed to the Deans, Vice Presidents and others as appropriate. All levels of management having an interest in findings and recommendations in the report shall be given an opportunity to comment, particularly on remedial actions planned or taken. Such views shall be incorporated into the final report to the extent practicable. The objectivity, and hence effectiveness, of the internal audit function is predicated on its independence and freedom from operational responsibility. Consequently, decisions affecting corrective action, or whether any is to be taken, are the responsibilities of the organization audited. The Internal Audit Department, however, has the responsibility for evaluating the proposed action or lack of it. If a material difference of opinion develops, the Director will refer the matter to the appropriate level for a decision.

Central Washington University is committed to the professional practice of internal auditing. Internal audits shall be conducted in conformance with the Institute of Internal Auditors' Standards for the Professional Practice of Internal Auditing; AICPA Statements on Auditing Standards; the General Accounting Office's Standards for Audit of Governmental Organizations, Programs, Activities and Functions; and the Central Washington University Internal Audit Manual, as appropriate. A staff of recognized professional auditors will conduct the audit work. These auditors should possess a high level of technical knowledge or experience in auditing techniques. The staff will have relevant graduate academic degrees; certification as Certified Internal Auditors, Certified Information Systems Auditors, or Certified Public Accountants; will be seeking certification; or will possess skills necessary to conduct the examination of internal controls.

The professional development of all auditors is essential if a progressive and qualified force is to be maintained. Professional development requires activities planned and carried out by both Central Washington University and the auditor. In addition to on-the-job guidance, the University will provide off-the-job training through courses offered by outside sources, in appropriate circumstances. Auditors have a responsibility to devote themselves to sufficient personal study and development.

Approved:

Jerilyn S. McIntyre
President

Approved:

Gwen Chaplin, Chair
Board of Trustees

November 17, 2000