Internal Audit Charter

Internal Audit Charter

Purpose and Scope

Dixie State University’s Internal Audit function is an independent appraisal activity within the University for the review of operations as a service to administration. It is a managerial control, which functions by measuring and evaluating the effectiveness and efficiency of controls and operations.

The overall mission of the Internal Audit Department is to assist University administration, the Dixie State University Board of Trustees and its Audit Committee in the effective discharge of their responsibilities and in identifying, avoiding and, where necessary, mitigating risks so that:

University assets are safeguarded;
Information is accurate and reliable;
University policies and procedures and external laws and regulations are followed;
Resources are used efficiently and economically;
Operations and programs are being carried out as planned and results are consistent with the University’s objectives.
Authority and Responsibility

The Internal Audit Department has full, free, and unrestricted access to all University information, documents, records, and personnel in conjunction with audit activities. Information obtained during the course of audit activities will be held with appropriate confidentiality.

Utah State Law 63I-5-201 and Utah State Board of Regents Policy R567 provide the authority for the establishment, responsibilities and authority of the Internal Audit Department.

No officer, administrator, or staff member may interfere with or prohibit internal auditors from examining any University or related organization’s record or interviewing any employee or student that the auditors believe is necessary to carry out their duties.

The Internal Audit Department is responsible for conducting internal audits and evaluations of the University’s system of internal controls within the policies established by the State Board of Regents and DSU administration. The audits will include assessments of the reliability of departmental financial information, compliance with University policies and procedures, compliance with laws and regulations, safeguarding of assets and the effectiveness and efficiency of operations.

The Internal Audit Department has the responsibility to develop a flexible annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by administration, and implement the plan as approved by the Board of Trustee’s Audit Committee.

Additionally, the Internal Audit Department has responsibility to maintain a professional audit staff with sufficient knowledge, skills, and experience to meet the requirements of this Charter; issue periodic reports summarizing results of audit activities; assist University administration by conducting special reviews and investigations; and to assist the external auditors and regulators, as appropriate.

Reporting Relationships

The Director of Internal Audit reports administratively to the Vice President of Administration and functionally to the Trustee Audit Committee with a direct line to the President as needed. The Director of Internal Audit also has direct access to committee members and all Officers on the Board of Trustees when circumstances warrant such communication.

Independence

Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

In order for the desired results to be realized, auditors must perform their work fully and objectively, that is, be independent of the activities they audit. They must have no authority over or responsibility for the activities they audit.

In order to maintain independence and objectivity, an auditor will not be assigned audits involving the following instances:

  • Any situation in which a conflict of interest or bias is present.
  • Any situation that involves a member of the auditor’s immediate family.

Professional Standards

Standards for the performance of the audit function are developed from the following:

The Standards for the Professional Practice of Internal Auditing (Institute of Internal Auditors).
The Statement of Responsibilities and Code of Ethics defined by the Association of College and University Auditors (ACUA).