Internal Audit at Kentucky State University (the “University”) is an independent and objective function with a purpose to strengthen the organization’s ability to create, protect, and sustain value by providing the Board of Regents (“Board”) and/or Audit Committee (“AC”), as well as management with independent, risk-based, and objective assurance, advice, insight, and foresight. It assists the University in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the University’s risk management, control, and governance processes.
The Internal Audit Charter defines Internal Audit’s authority, role, and responsibilities that should be granted by the Board/AC.
Internal Audit will govern itself by adherence to The Institute of Internal Auditors' mandatory guidance, which includes the Global Internal Audit Standards (the "Standards") and Topical Requirements. This mandatory guidance constitutes principles of the fundamental requirements for the professional practice of internal auditing and for evaluating the effectiveness of Internal Audit's performance.
The Institute of Internal Auditors' recommended guidance will also be adhered to as applicable to guide internal audit operations. Internal Audit will also adhere to the University's relevant policies and procedures and is responsible for maintaining the confidentiality and safeguarding of records and information.
Internal Audit is established by the Board of Regents and/or the Audit Committee. The Board and/or Audit Committee grants Internal Audit the mandate to provide the Board of Regents/Audit Committee, and senior management with objective assurance, advice, insight, and foresight. Internal Audit's responsibilities are defined by the Board of Regents/Audit Committee as part of their oversight role.
In performing their responsibilities, Internal Audit is authorized to have full, free and unrestricted access to all property, personnel and records relevant to the subject under review.
Internal Audit's scope includes all organizational activities, assets, and personnel. This includes objective examinations to provide assurance and advisory services related to governance, risk management, and control processes. Advisory services may be provided upon request, if Internal Audit does not assume management responsibilities. Internal Audit shall have direct access to the Chief Financial Officer and the Board of Regents/Audit Committee.
Internal Audit will report functionally to the Board of Regents/Audit Committee and administratively (i.e., day to day operations) to the Chief Financial Officer. This reporting structure ensures Internal Audit has the authority and visibility to raise issues to senior leadership and the Board of Regents/Audit Committee, supporting its objectivity and independence. Internal Audit will disclose to the Board any interference internal auditors encounter related to the scope, performance, or communication of internal audit work and results. The disclosure will include communicating the implications of such interference on the internal audit function's effectiveness and ability to fulfill its mandate. INDEPENDENCE AND OBJECTIVITY
Internal Audit will remain independent from the organization and shall be responsible in determining matters of audit selection, scope, procedures, frequency, timing, and report content. If independence or objectivity is determined to be impaired in fact or appearance, Internal Audit will disclose the details of the impairment to the appropriate parties. Internal Audit has neither direct responsibilities for, nor authority over, any of the activities reviewed. Therefore, the