INTERNAL AUDIT CHARTER
PURPOSE
Internal Audit of Loyola University New Orleans (the University) examines
the
University’s activities and evaluates risk; compliance with and adequacy of
applicable policies and procedures; and compliance with applicable laws and
regulations. The effectiveness of supervision is also evaluated.
Internal Audit independently performs its evaluations at the direction
of the Audit
Committee of the Board of Trustees of the University. Internal Audit reports on
its activities to Management for administrative purposes, the Audit Committee
and the Board of Trustees. To this end, Internal Audit furnishes the President,
the Audit Committee and the Board of Trustees with facts, analyses,
recommendations and pertinent information about the activities reviewed.
Internal Audit evaluates and reports on the three broad objectives and
five
interrelated components of Internal Control as defined by the Committee of
Sponsoring Organizations (COSO) of the Treadway Commission. The objectives
of the University’s system of internal control include:
- Effectiveness and efficiency of operations (including the safeguarding
of resources); - Reliability of financial reporting; and
- Compliance with applicable laws and regulations.
To address these objectives and to promote the early identification of known or
potential problems, Internal Audit will, as appropriate, evaluate the five
interrelated components of internal control, which are:
1. Control Environment – Control environment factors include the
integrity, ethical values and competence of the University’s associates;
the director’s philosophy and operating style; the way the director
assigns authority and responsibility, and organizes and develops their
associates; and the attention and direction provided by the Board of
Trustees;
2. Risk Assessment – Risk assessment is the identification and analysis
of relevant risks to achievement of established objectives, forming a
basis for determining how the risks should be managed;
3. Control Activities – Control activities are the policies and procedures
that help ensure directives are carried out;
4. Information and Communication – Pertinent information must be
identified, captured and communicated in a form and time frame that
enables the University associates to carry out their responsibilities.
Effective communication must occur in a broad sense, flowing down,
across and up throughout the organization; and
5. Monitoring – Internal control systems need to be monitored – a
process that assesses the quality of the system’s performance over
time.
STANDARDS
Internal Audit of the University shall carry out its duties and responsibilities
in
accordance with the Institute of Internal Auditor’s Standards for the Professional
Practice of Internal Auditing and its Code of Ethics. To ensure a timely, effective
and independent risk assessment for the University, Internal Audit will operate in
accordance with professional standards for:
Independence
Internal Audit is independent of the activities reviewed.
Professional Proficiency
Internal Audit evaluations require proficiency and due professional
care. As
such, the Standards for the Professional Practice of Internal Auditing
promulgated by the Institute of Internal Auditors will be used in the planning and
execution of the Internal Audit function.
Scope of Work
The scope of Internal Audit’s procedures includes the risk based examination
and evaluation of the adequacy and effectiveness of the University’s system of
internal control; evaluation of compliance with applicable policy and procedures;
and evaluation of compliance with applicable laws and regulations. All
organizations and programs, directly or indirectly managed by the University, are
subject to review by the Internal Auditor. Internal Audit’s evaluations measure
the University’s achievement of its goals and objectives.
Performance of Work
Internal Audit’s work includes planning the evaluation, examining
and evaluating
information, communicating results and following up. In fulfilling its
responsibilities, Internal Audit must design and execute audit plans which
address risks and provide cost effective recommendations.
AUTHORITY
Internal Audit operates independently under the authority and policies
established by the University and its Board of Trustees. Internal Audit reports
administratively to the President of Loyola University New Orleans and
functionally to the Audit Committee of the Board of Trustees of Loyola University
New Orleans.
To carry out its’ duties and responsibilities, the internal auditor has full, free and
unrestricted access to all relevant university activities, records, property and
associates. Internal Audit has no authority or responsibility for the activities
evaluated. Internal Audit may not have organizational relationships, duties or
operating responsibilities that impair objectivity.
Loyola University New Orleans
Reverend Kevin Wildes, S.J. Date
President
Loyola University New Orleans
Reverend Lawrence W. Moore, S.J. Date
Chairman, Audit Committee
Loyola University New Orleans
Deborah B. Zimmerman Date
Director, Internal Audit
University New Orleans
