Internal Audit Charter

 

MISSION

The mission of Internal Audit at Touro College (“Touro”) is to provide independent and objective assurance and consulting services designed to add value in improving the Touro’s operations. It helps Touro accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes.

As part of the mission, Internal Audit department is to contribute to the ongoing effectiveness of the firm’s internal controls by:

• Evaluating operations and internal controls to help ensure:
  • Assets are safeguarded
  • Policies, standards, and procedures are followed
  • Resources are obtained economically, used efficiently, and adequately
    protected
• Being a partner with the business stakeholders to help ensure controls are:
  • Established in a new business
  • Properly maintained by existing businesses
• Assessing and making appropriate recommendations for improving governance processes
• Assisting Touro to identify and evaluate significant risks
• Interacting with the various governance groups as needed

INDEPENDENCE

The Internal Audit function must maintain its independence in order to be effective.  Independence permits Internal Audit to carry out their work freely and objectively, in order for Internal Audit to render the impartial and unbiased judgments essential to the proper conduct of audits.

The Internal Auditor and the Internal Audit personnel report to the Audit Committee and the President. Internal Auditors have no direct responsibility or authority over any operating activities reviewed and should not relieve others of their responsibilities. Management and the board of trustees are responsible for the operations of the organization.

The Internal Auditor and any other audit staff should sign an annual conflict of interest statement to allow the disclosure of any situation that may impair their objectivity.

The Internal Auditor has unrestricted access to the Audit Committee of the Board of Trustees. 

CONFIDENTIALITY

It is essential that the Internal Auditor maintain confidentiality regarding audit matters and information arising from audit tasks.

AUTHORITY

The Internal Auditor and any other designated staff, with coordination with the President, are authorized to:

• Have unrestricted access to all functions, records, property, and personnel with the exception of those materials that may be confidential or privileged as determined by the Office of the General Counsel.
• Have full and free access to the President and to the Audit Committee.
• Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish the audit objectives.
• Obtain the necessary assistance of personnel in units of Touro where they perform audits, as well as other specialized services from within or outside Touro.

The Internal Auditor and any designated staff are not authorized to:

• Perform any operational duties for Touro or its affiliates.
• Initiate or approve accounting transactions external to the Internal Audit
  function with the exception of monitoring executive expenses, as
  necessary.
• Direct the activities of any organization employee not employed by the
  Internal Audit function, except to the extent that such employees have been
  appropriately assigned to audit teams or to otherwise assist the Internal
  Auditors.
• Violate any privilege, confidence, divulge or disclose information that is privileged or confidential.

RESPONSIBILITY

Internal Audit is an independent appraisal activity assisting management by providing findings and recommendations on the operations and the controls established within the organization.  It is an independent reviewer working for and with management to accomplish the objectives of the organization.

The Internal Audit function is accountable for reviewing activities in the organization and reporting its findings, conclusions, and recommendations to the audited parties, senior management and the Audit Committee.  In doing so, it assists the organization in reaching its goals by determining that internal and operational controls exist and are functioning to ensure, as far as is practical, the orderly and efficient conduct of its business.  In addition, Internal Audit helps ensure the safeguarding of assets, the reliability of accounting records and the timely preparation of reliable financial information.

The management of Touro College is responsible for establishing and maintaining internal controls including controls to discourage perpetuation of fraud. Internal Audit is responsible for examining and evaluating the adequacy and effectiveness of those controls. Audit procedures alone are not designed to guarantee the detection of fraud.

The Internal Auditor and any other staff of the Internal Audit function have responsibility to:

• Develop a flexible annual audit plan using an appropriate risk-based
  methodology, including any risks or control concerns identified by management, and submit that plan to the Audit Committee for review and approval as well as periodic updates.
• Implement the annual audit plan, as approved, including any special tasks or
  projects as deemed appropriate and requested by the President and/or the Audit Committee.
• Report in a timely manner significant risk-related issues pertaining to the processes for controlling the activities of Touro and its affiliates, suggest potential improvements to those processes, and provide information concerning such issues throughout the resolution effort.
• Report at least quarterly to the President and the Audit Committee to provide information on the status and results of audit activities.
• Assist in the investigation of significant suspected fraudulent activities within
  Touro and notify the President and the Audit Committee of the results.
• Consider the scope of work of the external auditor and regulators, as
  appropriate, for the purpose of providing optimal audit coverage to Touro at a reasonable cost.
• Review the organization’s internal audit charter annually with the President and the Audit Committee.
• Maintain a professional audit staff with sufficient knowledge, skills, experience and professional development to meet the requirements of the charter.

STANDARDS OF AUDIT PRACTICE

The Internal Audit department adheres to the Institute of Internal Auditors’ (IIA) Standards for the Professional Practice of Internal Auditing. In addition, the department obtains guidance from the generally accepted authoritative auditing standards of other professional auditing organizations, such as:

• Association of Certified Fraud Examiners (ACFE)
• Information Systems Audit and Control Association (ISACA)

CHARTER AMENDMENT

The Internal Auditor is the officer responsible for regular review of the Internal Audit Charter.

Amendment of this Charter is subject to the approval of the Audit Committee and Executive Management.

ENACTMENT

i. The forgoing was proposed to the Audit Committee on the 24 of April 2014.

ii. The forgoing was adopted by the Internal Audit Department on the 24 of April 2014.