The role of internal audit is to give the governing body and the head of the institution assurance about the adequacy of the arrangements for risk management, value for money, internal controls, and governance. Good internal auditors will in fact give a governing body valuable insights into the overall quality of institutional management. Internal auditors can be “the eyes and ears” of governors. Their value in this role will depend on their remit and governors’ interest in what they produce. Without that involvement auditors’ work may be superficial. When reading audit reports, governors should expect to see the language of strategy, performance and quality as well as risk and control.
There are 3 main ways in which internal audit can be provided:
Internal audit work will usually be organised around a series of specific reviews, contained in a plan considered in detail by the audit committee and approved by the governing body. The plan will derive from and relate to the risk register. An annual report should be made to the governing body.
A periodic review should be made of the way in which the internal audit service is provided.
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