Friday September 22nd 2017
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Internal Audit
Gyabaah Adomah
(Head of the Internal Audit)

Mission Statement of the Internal Audit Unit

Using the knowledge, experience and professional judgment, the Internal Audit Unit (IAU) facilitates the strengthening of the internal control environment in the MDAs and MMDAs, by furnishing management with:

  • On-going risk assessments ,

  • Constructive recommendations and analysis ,

  • Reliable  opinions; and

  • Reports to the management and the Audit Implementation Committee (ARIC) on the adequacy of internal controls, the accuracy, reliability and propriety of transactions, the extent to which assets are accounted for and safeguarded, and the level of compliance with institutional policies, laws and regulations

Definition of Internal Auditing

According to the Institute of Internal Auditors, “Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations It helps an organisation accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control and governance  processes".

The MDAs and MMDAs support the IAU as an independent appraisal function to examine and evaluate its financial and operational activities. The IAU follows the International Standards of Professional Practice of Internal Auditing and the Internal Audit Standards adopted by the IAA

Reporting Line

The Head of Internal Audit Unit reports functionally to the Director-General of Internal Audit Agency (Section 16.3 of Act 658) and to the Audit Reporting Implementation Committee .The Head of the Unit also reports administratively to the Head of the MDA/MMDA

Mandate of Internal Audit Unit in MDAS

The mandate of the IAUs in the MDAs should be defined by the Internal Audit Charter and the responsibilities imposed on the Audit function by legal framework of the Internal Audit Agency Act.

Scope of the Internal Audit Unit

The scope of the IAU's work is to determine whether the risk management, control and governance processes, as designed and represented by Management of the MDAs, is adequate and functioning in a manner to ensure that:

  • Risks are appropriately identified and managed.

  • Interaction with the various governance groups occur as needed.

  • Significant financial, managerial and operating information is accurate, reliable and timely.

  • Accounting procedures are effective.

  • Employees ' actions are in compliance with policies, standards, procedures and applicable laws and regulations.

  • Resources are acquired economically used efficiently and adequately protected.

  • Programmes plans and objectives are achieved.

  • Quality and continuous improvement are fostered in the MDAs and are recognised and addressed appropriately.

  • Opportunit ies for improving management control, and the MDAs image may be identified during audits and communicated to the appropriate level of management.

Accountability

The IAU shall be accountable to their MDA. The IAU shall:

  • Provide an annual assessment on the adequacy and effectiveness of the processes for controlling the activities of the MDA and managing its risks in the areas set forth under scope of the IAU's annual audit plan.

  • Audit and validate monthly financial statements submitted to the Head of the MDA.

  • Report significant issues related to the processes for controlling the activities of the MDA including potential improvements to those processes, and provide information concerning such issues through resolution.

  • Periodically provide information on the status and results of the annual audit plan and the sufficiency of the IAU's resources.

  • Co-ordinate with and provide oversight of the other control and monitoring functions (risk management compliance security, ethics, environmental, external audit).

Responsibility

The primary objective of the IAU is to assist management in the effective discharge of their responsibilities. In order to carry out this responsibility, the IAU shall:

  • Develop a three year strategic plan and present it to the ARIC and management for its review and approval.

  • Develop an annual audit plan and submit the plan to the management for review and approval.

  • Implement the annual audit plan, as approved, including, as appropriate, any special tasks or projects requested by management of the MDA and the ARIC.

  • Maintain professional audit staff with sufficient knowledge, skills, experience and professional certifications to meet the requirements of the audit function in the MDA.

  • Keep abreast with relevant best practice and new developments affecting their work and in matters affecting the activities of the MDA.

  • Respond to the MDA changing needs, and strive for continuous improvement and maintain integrity in carrying out their activities.

  • Issue reports to management summarising results of audit activities.

  • Assist in the investigation of significant suspected fraudulent activities within the MDA and notify management of the results.

Authority

The IAU has the authority to audit all parts of the MDA and shall have complete access to any of the records, physical properties, and personnel relevant to the performance of an audit Documents and information given to auditors will be handled as prudently as they would be by those employees normally accountable for them.

The IAU will have no direct responsibility or authority for any of the activities or operations it reviews. It should not develop and install procedures, prepare records, or engage in activities that would normally be reviewed by auditors.

The IAU is authorised to:

  • Have full and free access to ARIC members.

  • Allocate resources, set audit frequencies, select auditable subjects, determine scope of audit work and apply the techniques required to accomplish audit objectives.

  • Obtain the necessary assistance of personnel in the MDA where they perform audits 

 
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