Purpose

INTRODUCTION

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the University’s operations. It helps the University accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. The mission of internal audit is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight. Internal Auditing supports the University’s Clemson Elevate initiatives through its mission of institutional support by assisting with accountability, stewardship of resources, identifying opportunities for continuous improvement, and reporting to the Board of Trustees, University leaders, and the campus community.

STANDARDS FOR THE PROFESSIONAL PRACTICE OF INTERNAL AUDITING

Internal Auditing will govern itself by adherence to the mandatory elements of the Institute of Internal Auditors’ International Professional Practices Framework, including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Definition of Internal Auditing. The Director of Internal Auditing will report periodically to senior management and the Executive and Audit Committee regarding the department’s conformance to the Code of Ethics and the Standards.

The Internal Auditing staff members have a responsibility to those they serve and should refrain from entering into any activity that may create a conflict of interest. They have an obligation of self-discipline beyond the requirements of the laws and regulations. They should uphold and demonstrate qualities of integrity, honesty, loyalty, morality, dignity, and confidentiality consistent with the Code of Ethics.

REPORTING RELATIONSHIPS

The Executive and Audit Committee was formed to assist the Board of Trustees in its oversight function. The Director of Internal Auditing reports functionally to the Executive and Audit Committee of the Board of Trustees and administratively to the Executive Vice President for Finance and Operations. This reporting relationship allows the Director to provide information directly to the Executive and Audit Committee regarding the strengths and risks of University processes and controls.

AUTHORITY

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 by those employees normally accountable for such information.

The Office of Internal Auditing will have 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 management of their assigned responsibilities.

RESPONSIBILITY

The Office of Internal Auditing will:

• develop an audit plan using an appropriate risk-based methodology that includes consideration of the University’s goals and objectives and the concerns of management and the Board,
• perform audits that evaluate policies and internal controls; assess the reliability of data; determine compliance with policies, laws and regulations; evaluate efficiency and effectiveness of operations; and, examine the means of safeguarding assets,
• follow up on actions taken by management to determine adequacy, effectiveness, and timeliness,
• issue periodic reports to management and the Board summarizing the results of audit activities,
• provide consulting and advisory services to management that add value and improve the University’s governance, risk management, and control processes without Internal Auditing staff assuming management responsibility,
• investigate suspected fraudulent activities within the organization and notify management and the Board of the results,
• maintain professional internal audit resources with Internal Auditing staff and, where appropriate, other internal or external resources with sufficient knowledge, skills, experience, and professional certifications.

QUALITY ASSURANCE AND IMPROVEMENT PROGRAM

Internal Auditing will maintain a quality assurance and improvement program that covers all aspects of the internal audit activity. The program will include an evaluation of Internal Auditing’s conformance with the Standards and an evaluation of whether internal auditors apply the IIA’s Code of Ethics. The program will also assess the efficiency and effectiveness of the internal audit activity and identify opportunities for improvement.

The Audit Director will communicate to senior management and the Executive and Audit Committee on the internal audit activity’s quality assurance and improvement program, including results of ongoing and periodic internal assessments and external assessments conducted at least once every five years by a qualified, independent assessor or assessment team from outside the University.

INTERNAL AUDITING INDEPENDENCE

The Office of Internal Auditing is considered a staff function of the Board of Trustees. IA reports functionally to the Executive and Audit Committee of the Board of Trustees and administratively to the Executive Vice President for Finance and Operations. IA has no direct responsibility or authority over any activities the Office reviews.