(Revised March 2004)
The mission of internal audit is to assess and monitor the university community in the discharge of their oversight, management, and operating responsibilities in relation to governance processes, the systems of internal controls, and compliance with laws, regulations and University policies including those related to ethical conduct by providing relevant, timely, independent, and objective assurance, advisory and investigative services using a systematic, disciplined approach to evaluate risk and improve the effectiveness of control and governance processes.
Internal Audit Management Charter
(Revised November 2009, Draft pending Regental approval)
Authority
Internal Audit functions under the policies established by The Regents of the University of California and by University management under delegated authority.
Independence
To permit the rendering of impartial and unbiased judgment essential to the proper conduct of audits, internal auditors will be independent of the activities they audit.
Independence is essential to the effectiveness of the Internal Audit Program. This independence is based primarily upon organizational status and objectivity:
The Senior Vice President - Chief Compliance and Audit Officer reports functionally to The Regents through its Committee on Compliance and Audit and administratively to the Executive Vice President-Business Operations. The Senior Vice President - Chief Compliance and Audit Officer also has direct access to the President of the University.
The locally based Internal Audit Departments report functionally to The Regents through the Office of Ethics, Compliance and Audit Services and administratively to the campus Chancellor or Laboratory Director directly or through designated channels. (For reporting purposes, the Chancellor's designee shall be at the level of Vice Chancellor or above, and the Laboratory Director's designee shall be at the level of Associate Director or above.)
Internal Auditors may take directly to the respective Chancellor or Laboratory Director, the Senior Vice President - Chief Compliance and Audit Officer, the President, or The Regents matters that they believe to be of sufficient magnitude and importance. Internal Auditors shall take directly to the Senior Vice President - Chief Compliance and Audit Officer who shall report to the Executive Vice President-Business Operations and The Regents' Committee on Compliance and Audit Chair any credible allegations of significant wrongdoing (including any wrongdoing for personal financial gain) by or about a Chancellor, Executive Vice Chancellor or Vice President, or any other credible allegations that if true could cause significant harm or damage to the reputation of the University. Internal Auditors shall take directly to the Senior Vice President - Chief Compliance and Audit Officer who shall report to The Regents' Committee on Compliance and Audit Chair any allegations by or about the Executive Vice President-Business Operations or the President. Any such matters will be reported to The Regents' Board Chair at the discretion of the Senior Vice President - Chief Compliance and Audit Officer or Committee on Compliance and Audit Chair.
In performing the audit function, the Office of Ethics, Compliance and Audit Services has no direct responsibility for, nor authority over, any of the activities reviewed. Therefore, the internal audit review and appraisal process does not in any way relieve other persons in the organization of the responsibilities assigned to them.
Scope
Internal Audit is authorized to have full, free and unrestricted access to information including records, computer files, property, and personnel of the University in accordance with the authority granted by the Board's approvals of this charter and applicable federal and state statues.
Except where limited by law, the work of Internal Audit is unrestricted. Internal Audit is free to review and evaluate all policies, procedures, and practices of any University activity, program, or function.
Standards
The responsibility of the Internal Audit Program is to serve the University in a manner that is consistent with the standards established by the Senior Vice President - Chief Compliance and Audit Officer. At a minimum it shall comply with the relevant professional standards such as the Standards For The Professional Practice of Internal Auditing, and with professional standards of conduct such as the Code of Ethics of the Institute of Internal Auditors, Inc.