Audit Charter

Purpose

Internal Auditing is an independent appraisal function established within the University to examine and evaluate its activities as a service to the organization. The objective of the Office of the Internal Auditor is to assist the Board of Trustees, President and University management in the discharge of their oversight, management and operating responsibilities. This objective is accomplished by providing analyses, appraisals, recommendations and information about the activities reviewed by the Office of the Internal Auditor. The Office of the Internal Auditor assesses the efficiency and effectiveness of internal controls with the goal of promoting effective controls at reasonable costs to the University. The internal audit function is an integral part of the institution and plays an important role in the management control system by measuring and evaluating the controls. The internal audit review and appraisal process does not in any way relieve other University personnel of the responsibilities assigned to them.

Organization and Authority

The Office of the Internal Auditor is a vital part of the University and functions in accordance with University policies. The Office of the Internal Auditor reports functionally to the Audit Committee of the Board of Trustees and administratively to the President’s Office to permit independent and unbiased judgments essential to the proper conduct of audits.

The Office of the Internal Auditor is authorized to have access to information including computer files, records, property and personnel of the University excluding individual user’s computer passwords. University units will submit information and records in a timely manner and in the form specified by the Office of the Internal Auditor.

Western Washington University is committed to the professional practice of internal auditing. Internal audits shall be conducted in conformance with the Institute of Internal Auditor’s Standards for the Professional Practice of Internal Auditing and Western Washington University’s Internal Audit Manual.

Independence

Internal Audit management and staff will be independent of the activities that they review. In performing the audit function, the Office of the Internal Auditor has no direct responsibility for, nor authority over, any of the activities reviewed. Independence requires that the Internal Auditor carry out work freely and objectively. The Internal Auditors are not to subordinate their judgment on audit matters to the opinions of others.

Types of Audit Services

1. Regular audits
2. Follow up audits
3. Consultation reviews
4. Special investigations
5. Advice and training

A risk based audit schedule is created each year which allows for contingencies that develop during the year. Audit services are coordinated with the State Auditor’s Office to reduce duplication of efforts and increase audit coverage of the University. The annual audit plan is developed with input from the Audit Committee, President, Provost, Vice Presidents, and other university management and approved by the Audit Committee of the Board of Trustees.

Duties and Responsibilities

1. To perform internal operational and/or financial audits of programs, services, departments and accounts that come under the budget authority of the University.
2. To report all Internal Audit findings to the Audit Committee, President and appropriate university management.
3. To prepare written Internal Audit reports on the results of the audit engagement and evaluate the University’s plans or actions to correct reported concerns.
4. To provide Internal Audit recommendations to management to assist them in maintaining reasonable control processes.
5. To develop a risk based annual audit schedule and obtain the approval of the Audit Committee.
6. To coordinate Internal Audit services with the State Auditor’s Office and other outside auditing firms.
7. To proactively consult with University departments and committees to provide internal control considerations.
8. To perform special investigations due to such allegations as fraud, theft, waste, or abuse and recommend control improvements.
9. To advise university personnel in understanding proper controls, regulations and efficient and effective operations.

Objectives of a Regular Audit

1. To develop an audit plan which focuses on the program’s or department’s high risk areas, including the specific concerns of University management.
2. To appraise the efficiency and effectiveness of internal control systems and processes.
3. To evaluate the reliability and integrity of financial and operational systems and information.
4. To evaluate the adequacy of policies and procedures which have a significant impact on the success of the operations.
5. To assess the level of compliance with University policy and State and Federal law.
6. To review the controls in place for safeguarding University assets.
7. To review operations or programs for the accomplishment of their objectives and goals.
8. To provide management with recommendations for improving operations, reducing risks and maintaining compliance with policies and regulations.

Audit Reports

Prior to the creation of the draft audit report, the results of the audit are communicated to the appropriate, designated members of management. The Office of the Internal Auditor creates written audit reports at the conclusion of the audit fieldwork. The audit reports are submitted in draft form first to the President and if appropriate to the Provost and/or Vice President, Dean and department under review, depending on the audit. The Office of the Internal Auditor will meet with appropriate university personnel to discuss the draft report to ensure that the information in the draft report is clear, concise and accurate. Final draft audit reports are updated if necessary based on exit meeting(s) discussions at the Internal Audit Director’s discretion. Final draft audit reports are issued requesting written responses from the area(s) under review. Written responses shall include corrective action plans directed toward addressing each of the recommendations in the final draft audit report. Management’s responses are incorporated into the final audit report. Copies of the final audit reports are distributed to the Audit Committee of the Board of Trustees, President and Provost, Vice President or Dean whose areas were reviewed. Persons receiving final audit reports from the Office of the Internal Auditor may distribute copies of the report to appropriate staff.

Original Charter Approval by President June 2002
Revised and Approved by Board of Trustees October 6, 2006