DEPARTMENT CHARTER

Purpose

Internal Audit conducts reviews of University records and operations and reports the results of these reviews to management and the Board of Trustees. The mission of the Internal Audit Department is to assist management by providing objective analyses of and recommendations to improve University activities. All Internal Audit projects will be conducted in keeping with the Standards for the Professional Practice of Internal Auditing issued by The Institute of Internal Auditors.

Authority

Internal Audit reports directly to the Fiscal Policy Committee of the Board of Trustees. This reporting relationship promotes independence and assures adequate consideration of audit findings and recommendations.

Internal Audit will be free from undue influence in selecting activities to be examined and the audit techniques and procedures to be used. To the extent permitted by law, Internal Audit will have unrestricted access to all sources of information, property, and personnel relevant to an area under review. Internal Audit will make special efforts to protect the confidentiality of information covered in a review, as well as any recommendations pertaining thereto. To the extent possible, Internal Audit will accommodate an area's daily operations in scheduling and conducting reviews.

Objectivity and independence are crucial to the duties of Internal Audit. Either may be compromised if auditors participate directly in preparing records or designing systems and operations. Therefore, the Internal Audit staff will serve only in an advisory capacity regarding these matters.

Responsibility

• Assessing financial and operational processes to determine if these will produce reliable information and ensure that resources are used in an efficient and effective manner in keeping with the University's mission and in compliance with relevant regulations and policies;
• Working in partnership with management to ensure policies and processes are effective and efficient; and,
• Serving as a resource to the University community in identifying the need for and characteristics of adequate systems of control.

Internal Audit will provide management with a written report for each finding and discuss the results of each project with staff in the area being reviewed. These meetings help ensure that findings and recommendations are valid and understood. Significant issues will be presented in a written report after a project is complete. Management will have an opportunity to review draft reports and to comment, in writing, relative to final reports. Such comments will be included in the final version of the report. Written reports will be addressed to the Secretary of the Board of Trustees, with copies to the Board of Trustees, the President, Vice President, Chancellor, Dean, other appropriate university officials, and management of the audited area. All reports will be presented to the Fiscal Policy Committee at the next scheduled meeting for the purpose of explaining the report and providing the committee members with an opportunity to ask questions of the auditor and management about the audited area.

To read the official USC policy concerning the Internal Audit department, please read policy BTRU 1.06 on the university Policies and Procedures website