The College of New Jersey

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Charter

 

Definition

Internal Audit- The Institute of Internal Auditors defines internal audit as “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

 

Purpose

The internal audit function at The College of New Jersey assists the Board of Trustees and management in satisfying their responsibilities related to maintaining adequate systems of internal controls, ensuring operational efficiencies, managing risks and complying with applicable laws and regulations.

The Internal Audit Department fulfills its purpose by independently measuring and evaluating the efficiency and effectiveness of internal controls related to both current and proposed activities of the College. It evaluates compliance with applicable laws, regulations, and College policies and procedures, and assesses the efficiency and effectiveness of those policies and procedures in meeting internal control and College objectives.

 

Reporting Relationship and Independence

The IAD reports functionally to the President and to the Audit, Risk Management and Compliance (“ARMC”) Committee of the Board of Trustees and administratively to the Compliance Officer.

The IAD has no direct operating responsibility for management processes or internal controls, nor does it have authority over any of the activities or operations it reviews; thereby, maintaining its independence and objectivity.

 

Authority

In order to complete the tasks of an internal audit department, the Director of Internal Audit and the external firm hired to perform internal audits under the direction of the Director are authorized to:

  • Have unrestricted access to all functions, records, property and personnel of the College, including the Schools, services, resource centers and administrative departments.
  • Select audit subjects, set frequencies, determine scopes of work and apply the techniques required to accomplish audit objectives.
  • Attend scheduled ARMC Committee meetings, have full and free access to the Committee and meet with the President as needed.
  • Meet with College officers, external auditors or outside counsel, as necessary.

 

Responsibilities

The Internal Audit Department will carry out the following responsibilities:

  • Develop an annual audit plan using a risk-based methodology in consultation with senior management and submit that plan to the ARMC Committee for review and approval.
  • Implement the approved audit plan including any projects or emerging issues requested by management and/or the ARMC Committee.
  • Report audit observations, evaluations, conclusions and recommendations that result from audit work to local management of the area audited, senior management as deemed appropriate, the President and the ARMC Committee.
  • Perform follow-up with the audit client to determine that planned corrective actions are implemented and that such actions are effective to eliminate or mitigate the risks identified during the audit process.
  • Summarize the status of the annual audit plan and the corrective actions taken and report status to the President and the ARMC Committee on a periodic basis.
  • Evaluate specific operations at the request of the Board or management, as appropriate.