What is Internal Audit? Internal Audit is an independent appraisal activity established within the Ministry under the authority of the Accounting Officer as a service to the Ministry by examining and evaluating its activities and the effectiveness of other controls.
Objectives Objective of The Division: Internal Audit (IA) is to provide assurance to the Accounting Officer on the adequacy of controls within all financial and operating systems. That assessment is based on the risks to which the Ministry may be exposed. It provides management with relevant reliable and objective information on the effectiveness of systems and practices in place that will ensure the achievement of the operational objectives. Why does the Ministry need Internal Audit Function? The Internal Audit Division is to provide the following four functions: Fulfils the Internal Audit functions within the Ministry, reports to Accounting Officer (PS) through the Audit Committee. Providing internal audit function as a service to the management by giving independent, management-orientated advice on the Ministry's internal control systems, operations and performance, with a view to improving accountability and performance. Internal audit sets standards for, and monitors compliance by internal auditors in line Ministries, also responsible for developing professional practice. Undertake special investigations on behalf of Treasury and reports to Permanent Secretary, Ministry of Finance.
Mission statement The mission of the Internal Audit division is to provide independent and objective reviews and assessments of the Ministry's activities, operations, financial systems and internal controls. The Internal Audit division seeks to assist management in: Carrying out continuous quality improvement of department operations and programs Promoting operational effectiveness and efficiency Ensuring that adequate safeguards exist over Government assets Ensuring adherence to the Ministry's policies and procedures Investigating fraud and irregularities The Internal Audit division accomplishes its mission by carrying out an annual audit plan that utilizes risk analysis to review critical areas of operations. To ensure the appropriate level of independence and objectivity, the Ministry's Internal Audit report to the Audit Committee and the Senior Management.
Legislative requirement The State Finance Act of 1991, Section 14 and 15 provide for the appointment of Internal Auditors and authorises their access to accounts, documents and records to perform their audit duties.
Activities The Division: Internal Audit within the Ministry of Finance has the following main roles: Internal Auditing within the Ministry of Finance Internal Auditing within ministries without their own Internal Audit Unit Special Investigations as required by the Treasury, Cabinet, etc. Identify and provide appropriate training to internal auditors in the Public Service The IA drafts briefs for the Minister/ Cabinet on possible questions that might be asked in the National Assembly as a result of Auditor General's Observations on the accounts of the Government and Municipalities.
Internal Audit relationship with management: The IA reports directly to the Permanent Secretary. An Audit Committee must still be established to review IA's work plan and output. Internal Audit Division is expected to assist management within the Ministry by evaluating and reporting on the adequacy of control within systems. Internal audit is not, however, a substitute for line management. Responsibility for internal control rests fully with line managers and staff, who must ensure that appropriate and adequate arrangements exist without regard to internal audit activity. IA is expected to achieve its objective through an independent and systematic appraisal which examines and evaluates the adequacy of control framework in each system.
Need assistance to: develop of Internal auditing standards and guidelines; enhance management capacity so that staff fulfill their tasks with maximum efficiency and effectiveness; produce an Internal Audit manual; and, Provide ongoing training to support the above requirements, not least in other Ministries.