MOPIAD ACTIVITY CHARTER:
MISSION AND SCOPE OF WORK
The mission of internal audit department is to provide independent, objective assurance and consulting services designed to add value and improve the organization’s operations. It helps the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of control and governance processes.
The scope of work of internal audit department is to determine whether the organization’s network of control and governance processes, as designed and represented by the management, is adequate and functioning in a manner to ensure:
Risks are properly identified.
Interaction with the various governance groups occurs as needed.
Significant financial, managerial, and operating information is accurate, reliable, and timely.
Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
Resources are acquired economically, used efficiently, and protected adequately.
Programs, plans, and objectives are achieved.
Quality and continuous improvement are fostered in the organization’s control process.
Significant legislative or regulatory issues impacting the organization are recognized and addressed properly.
The chief audit executive (CAE), in the discharge of his/her duties, shall be accountable to the Provincial Government of Misamis Oriental and the Provincial Governor to:
Provide annually an assessment on the adequacy and effectiveness of the organization’s processes for controlling its activities in the areas set forth under the mission and scope of work.
Report significant issues related to the processes for the controlling of activities of the organization including potential improvements to those processes, and provide information concerning such issues through resolution.
Provide information periodically on the status and results of the annual audit plan and the sufficiency of department resources.
Coordinate with other control and monitoring functions (e.g. compliance, security, legal, ethics, environmental, and external audit).
The CAE and staff of the internal audit department have responsibility to:
Develop a flexible annual audit plan using appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the Provincial Governor for approval.
Implement the annual audit plan as approved, including, as appropriate, any special tasks, or projects requested by management.
Maintain a professional audit staff with sufficient knowledge, skills, and experience, and professional certifications to meet the requirements of this charter.
Establish a quality assurance program by which the CAE assure the operation of internal audit activities.
Perform consulting services, beyond internal auditing’s assurance services, to assist management in meeting its objectives. Examples may include facilitation, process design, training and advisory services.
Evaluate and assess significant merging/consolidating functions and new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.
Issue periodic reports to the Provincial Government and the Governor summarizing results of audit activities.
Keep the Provincial Governor informed of emerging trends and successful practice in internal auditing.
Provide a list of significant measurement goals and results to the Provincial Governor.
Assist in the investigation of significant suspected fraudulent activities within the organization and notify management of the results.
Consider the scope of work of the external auditors and regulators, as appropriate, for the purpose of providing optimal audit coverage to the organization at a reasonableoverall cost.
The CAE and staff of the internal audit department are authorized to:
Have unrestricted access to all functions, records, property, and personnel.
Have full and free access to the audit committee.
Allocate resources, set frequencies, select subjects, determine scope of works, and apply the techniques required to accomplish audit objectives.
Obtain the necessary assistance of personnel in units of the organization where they perform audits, as well as other specialized services from within or outside the organization.
The CAE and staff of the internal audit department are not authorized to:
Perform any operational duties for the organization.
Initiate or approve accounting transactions external to the internal audit department.
Direct the activities of any organization employee not employed by the internal audit department, except to the extent such employees have been appropriately assigned to auditing terms or to otherwise assist the internal auditors.
STANDARD OF AUDIT PRACTICE
The Misamis Oriental Provincial Internal Audit Department will meet or exceed The Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing.
Risk assessment activities were conducted by the Misamis Oriental Provincial Internal Audit Department (MOPIAD) among 15 departments/offices so as to assist the management in identifying, quantifying and prioritizing existing and potential risks confronting the departments/offices against achieving respective goals and objectives. Seven (7) Standard Internal Audit Procedures and one (1) Special Audit Procedures were also conducted by the MOPIAD and the corresponding audit reports were rendered. Relatedly, some draft operational manuals of some 24 departments/offices were being reviewed.