Audit And Governance

Audit governance ensures clarity over the purpose and responsibilities of the audit, that there’s an official mandate and clear departmental goals are in place.

Internal audit should be suitably positioned, resourced and have the authority within the organisation to enable it to fulfil its role effectively and deliver robust assurance which feeds up through the management and governance frameworks.

The establishment and approval of the internal audit charter and associated policies and procedures assists in achieving this.

The charter should be widely published providing clarity over the purpose and responsibilities of the internal audit function ensuring there is a clear official mandate. The charter is usually approved by the audit committee on behalf of the board and should be updated annually.

The charter typically includes:

• Introduction and purpose
• Independence and objectivity
• Authority and responsibilities including rights of access
• Limits to authority and responsibilities
• CAE contact details
• Working protocol and performance monitoring
• Audit reporting and reporting lines
• Assurance framework
• Duty of care including data protection and fraud