Internal Audit charter

The Internal Audit charter defines the mandate, the responsibility and the authority of Internal Audit. It has been signed by the Director-General on 28 September 2009.

MISSION AND SCOPE OF WORK

The mission of the Internal Audit Service is to provide to the Director-General independent, objective assurance and consulting services designed to add value and improve the Organization’s operations. It helps the Organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The scope of work of Internal Audit is to determine whether the Organization’s network of risk management, control, and governance processes, as designed and implemented by management, is adequate and functioning in a manner to ensure that:

  • Risks are appropriately identified and managed.
  • Interaction with the various governance groups occurs as needed.
  • Significant financial, managerial, and operating information is accurate, reliable, exhaustive, traceable and timely.
  • Members of the personnel’s actions are in compliance with policies, standards, procedures, Code of Conduct and applicable laws and regulations.
  • Resources are acquired economically, used efficiently, and adequately protected.
  • Programs, plans, and objectives are achieved.
  • Operational and functional processes are mastered to serve the strategic, operational and financial objectives of the Organization.
  • Quality and continuous improvement are fostered in the Organization’s control process.
  • Significant regulatory issues impacting the Organization are recognized and addressed properly.

The scope of intervention of Internal Audit extends to the whole Organization and covers all administrative, accounting, financial, functional or operational processes.

Opportunities for improving management control, efficiency, and the Organization’s image may be identified during audits. They will be communicated to the appropriate level of management.

ACCOUNTABILITY

The Head of Internal Audit, in the discharge of his/her duties, shall be accountable to the Director-General to:

  • Provide annually an assessment on the adequacy and effectiveness of the Organization’s processes for controlling its activities and managing its risks in the areas set forth under the mission and scope of work.
  • Report significant issues related to the processes for controlling the activities of the Organization, including potential improvements to those processes, and provide information concerning such issues through resolution.
  • Provide information periodically on the status and results of the annual audit plan and the sufficiency of Internal Audit Service’s resources.
  • Coordinate with and provide oversight of other control and monitoring functions (e.g. risk management, security, legal, external audit).

INDEPENDENCE

To provide for the independence of the Internal Audit, the Head of Internal Audit reports to the Director-General. The Head of Internal Audit has access to the Audit Committee, or, if the case arises, its succeding body .

RESPONSIBILITY

The Head of Internal Audit has responsibility to:

  • Develop a flexible annual audit plan using appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the Director-General for review and approval. The annual audit plan is presented to the Audit Committee.
  • Implement the annual audit plan, as approved, including, and as appropriate, any special tasks or projects requested by the Director-General.
  • Regularly communicate to the Director-General and to the Audit Committee information on the progress and results of the annual audit plan, as well on the sufficiency of the Internal Audit resources.
  • Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this Charter.
  • Establish a quality assurance program by which the Head of Internal Audit assures the operation of internal auditing activities.
  • Perform consulting services, beyond Internal Audit’s assurance services, to assist management in meeting its objectives. Examples may include facilitation, process design, training, and advisory services.
  • Evaluate and assess significant merging/consolidating functions and new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.
  • Issue periodic reports to the Director-General and the Audit Committee summarizing results of audit activities.
  • Keep the Director-General and the Audit Committee informed of emerging trends and successful practices in internal auditing.
  • Assist in the investigation of significant suspected fraudulent activities within the Organization and notify the results to the Director-General.
  • Consider the scope of work of the external auditors, as appropriate, for the purpose of providing optimal audit coverage to the Organization in an efficient manner.


AUTHORITY

The Head of Internal Audit and the Internal Audit staff are authorized to:

  • Have unrestricted access to all functions, records, property, and personnel relevant to the performance of engagements. The documents and information entrusted to Internal Audit will be handled with the required level of confidentiality and integrity.
  • Have full and free access to the Audit Committee.
  • Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.
  • Obtain the necessary assistance of personnel in units of the Organization where they perform audits, as well as other specialized services from within or outside the Organization.

The Head of Internal Audit and the Internal Audit staff are not authorized to:

  • Perform any operational duties for the Organization.
  • Initiate or approve accounting transactions external to the Internal Audit Service.
  • Direct the activities of any Organization member of personnel not employed by Internal Audit, except to the extent such members of personnel have been appropriately assigned to Internal Audit or to otherwise assist the internal auditors.

STANDARDS OF AUDIT PRACTICE

The Internal Audit Service will meet or exceed the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors (IIA). The Internal Audit staff will comply with the IIA Code of Ethics.