Board of Trustees Manual
Chapter VII — Internal Auditing Division
INTERNAL AUDITING DIVISION POLICY
The Board of Trustees is committed to the proposition that University activities should be independently audited on a periodic basis as a service to management. The Board’s goal is that the External and/or State Auditor will never report a serious audit finding because the University’s internal audit function will have already discovered problems and presented them to management for timely solutions. The Director of Internal Auditing reports functionally to the Board of Trustees through the Executive & Audit Committee and administratively to the Vice President for Finance and Operations.
The Director of Internal Auditing shall be responsible for bringing to the immediate attention of the Chairman of the Board and the President any audit, or parts of an audit, that reflect practices, procedures, or actions that vary substantially from normal or sound business practices. The Chairman of the Board and the President, alone or in consultation with the Executive & Audit Committee, shall determine whether the President should take corrective actions regarding such audits or whether it should maintain it as information.'
The Executive & Audit Committee of the Board was formed to assist the Board in its oversight function. The Committee meets with various audit constituencies to discuss audit results and other issues relevant to University Administration.
The Internal Auditing Division shall be solely employed by and be responsible to the Board of Trustees. The internal auditors shall have complete access to all information and to all reports from any of the vice presidential positions, especially in the budget and finance area. A synopsis of all internal audit reports shall be submitted directly to the Chairman of the Board on a monthly basis and to the Executive & Audit Committee twice per year. The Executive & Audit Committee shall be kept fully informed by the Director of Internal Auditing of all follow-up responses and corrective actions taken by the offices and subjects of the audits.
The Director of Internal Auditing is authorized to direct a broad, comprehensive program of internal auditing that provides assurance and consulting services for Clemson University and its related organizations. Authorization is granted for full and complete access to any records, either manual or electronic, physical properties, and personnel relevant to the assurance or consulting engagement. Internal Auditing shall have the authority to review and appraise policies, plans, procedures, and records. Documents and information given to internal auditors during an engagement will be handled in the same prudent manner as it is by those employees normally accountable for such information. The Office of Internal Auditing has no direct responsibility or authority over any of the activities or operations for which it performs services. Internal Auditing’s services do not relieve University Administration of their assigned responsibilities.
To accomplish its mission, the Office of Internal Auditing strives to:
- Identify the significant risks to the University’s operations and information and help ensure policies and controls are in place to minimize these risks.
- Develop and implement audit plans and programs that respond to risk and cost-effective criteria.
- Review and evaluate policies and internal controls.
- Review the reliability, integrity and availability of data.
- Help ensure compliance with applicable policies, laws and regulations.
- Identify inefficient and ineffective operations and provide practical and effective recommendations for improvement.
- Review the means of safeguarding assets and, as appropriate, verify the existence of such assets.
- Review and appraise the economy and efficiency with which resources are employed.
- Investigate substantive allegations of fraud, waste and abuse of University assets in a legal and objective manner to identify responsible parties and quantify losses.
- Maintain a staff of qualified professional employees who are knowledgeable of the University’s policies, procedures and operations.
- Maintain operating standards consistent with those established by the Institute of Internal Auditors.
- Communicate recommendations to University management and other interested parties by producing clear, effective and timely reports.
The recommendations outlined in Internal Auditing Division reports are submitted as constructive suggestions to assist in strengthening controls and procedures.
Any Trustee may review in person any audit in the Office of Internal Auditing.