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Louisiana Tech University


Internal Audit

Charter

This charter sets forth the purpose, authority, and responsibility of the internal audit activity at Louisiana Tech University. The charter establishes the internal audit activity’s position within the University; authorizes access to records, personnel, and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities.

MISSION AND SCOPE OF WORK

The mission of the internal audit activity is to provide independent, objective assurance and consulting services designed to add value and improve the University’s operations. It helps the University accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. The internal audit activity is guided by a value-driven philosophy of partnering with other departmental units to continuously improve the operations of the University.

The scope of work of the internal audit activity is to determine whether the University’s network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:

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

RESPONSIBILITY

The University’s Director of Internal Audit (Director) and staff of the internal audit activity have responsibility to:

As discussed in the Board’s Internal Audit Charter, the University’s internal audit activity will include the following general objectives:

AUTHORITY

The Director and staff of the internal audit activity are authorized to:

The Director and staff of the internal audit activity are not authorized to:

INDEPENDENCE AND OBJECTIVITY

To provide for the independence of the internal audit activity, its personnel report to the University’s Director, who reports functionally to the Board through the System Director of Internal Audit and administratively to the President of the University. In performing their work, the Director and other internal audit staff members have no direct authority over, nor responsibility for, any of the activities reviewed. Internal auditors will not develop and install procedures, prepare or approve records, make management decisions, or engage in any other activity, which could be construed to compromise their independence. Therefore, internal audit reviews and appraisals do not in any way substitute for nor relieve other persons in the University of the responsibilities assigned to them. Staff of the internal audit activity shall be objective and maintain an independent mental attitude in performing engagements.

ACCOUNTABILITY

The Director in the discharge of his/her duties shall be accountable to management to:

AUDIT COMMITTEE FOR THE BOARD OF SUPERVISORS

To maintain oversight of the auditing function, both internal and external, the Audit Committee will review and approve a System-wide audit program for the upcoming year. The Audit Committee will also review the previous year’s System-wide audit program, along with the annual financial and compliance audits, including any specific issues of concern. As appropriate, any background documents related to specific audit issues will be sent to the Audit Committee upon request.

STANDARDS OF AUDIT PRACTICE

The internal auditing staff shall govern themselves by adherence to the Institute of Internal Auditors’ “Code of Ethics.” Assurance and consulting services shall be conducted in accordance with the Institute’s “International Standards for the Professional Practice of Internal Auditing” using such audit programs, techniques, and procedures as are considered necessary under the circumstances. Although not mandatory, internal auditing staff may obtain guidance in particular engagement situations from the Institute of Internal Auditors' “Practice Advisories”, the Information Systems Audit and Control Association’s “Standards for Information Systems Auditing”, the American Institute of Certified Public Accountants’ “Statements on Auditing Standards”, and the United States General Accounting Office’s “Government Auditing Standards”.


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