Audit and Assurance Unit

 

AUDIT AND ASSURANCE UNIT

 

 

 

 

 

 

 

 

 

 

 

 

Date Prepared:                   21 May 2007

Approved:                           Audit & Compliance Committee meeting 02/06 (8^th June 06) revised 4/06 ( 16^th  Nov 2006. To be re-tabled 02-07( 7^th  June  2007)

Next Review Date:              30 November 2007

 

 

 

           CONTEXT OF STRATEGIC PLAN

           Audit and Assurance Unit Quality Assurance Process

           Alignment with JCU Strategic Plan

           Approval and Review of Strategic Plan

           Legislative Context

           Linkage to the AAU Annual Work Program

OUR MISSION

           OUR CORE VALUES

           OUR GOALS

 

           STRATEGIC GOALS

           OPERATIONAL GOAL – AUDIT COVERAGE

                           Audit Planning

                           Assessment Methodology

                           3-year Cycle for Audit Coverage

 

 

 

 

 

 

 

 

 

Audit and Assurance Unit Quality Assurance Process

The Audit and Assurance Unit quality assurance process can be illustrated as follows:                                     

                                                   

Risk-Based Planning

This involves a three-stage planning process:

      1. Strategic Plan – outlines objectives and strategies for 3-year period

      2. Annual Work Plan – operationalises the first year of the strategic plan

      3. Individual Audit Plans – developed for each audit performed

 

Audit Performance

All audits performed follow an established audit methodology which is documented in the Audit Manual endorsed by the Audit and Compliance Committee at the 02/06 meeting.

 

Reporting

This stage involves the reporting of audit findings to University management and the subsequent follow-ups.  Also captured within this process is the quarterly reporting of audit activities to the Audit and Compliance Committee.

 

Continuous Improvement

A number of mechanisms have been established to critically evaluate the operations and performance of the Audit and Assurance Unit:

Ž            client feedback surveys;

Ž            benchmarking activities against other University audit units;

Ž            internal peer review against Standards of Professional Internal Audit Practice;

Ž            external peer review every 5 years;

Ž            input from Audit and Compliance Committee;  and

Ž            keeping abreast of internal audit best practice.

 

This document is the Audit and Assurance Unit three year strategic plan for the audit periods from 2006/07 to 2008/9.  It is based upon the prior year plan and has been enhanced through input from the Audit and Compliance Committee, Vice-Chancellor and all Audit and Assurance Unit staff, and also comparison with other University Audit and Assurance Unit strategic plans.

 

Alignment with JCU Strategic Plan

This strategic plan falls within the JCU quality assurance and strategic planning structures and is aligned with the priority objectives espoused in the JCU Strategic Plan “JCU In the Third Millennium…our future and how we get there”:

 

Priority Objective	Alignment to AAU Strategic Plan
Reputation	All audit findings are risk assessed with one of the components of this assessment being the potential for adverse impact upon the University’s reputation. [AAU Goals 1 and 2]
Participation	Our audits do not currently cover teaching and research performance.  However, the student life cycle has been identified as an auditable area of the University – this covers efficiency aspects of the enrolment process which can impact upon student satisfaction with their University experience.  This area is included in the risk assessment process and included in relevant annual audit work programs. [AAU Goals 1 and 2]
Engagement	The Audit and Assurance Unit encourages representation on, and participation in, related professional community groups and events (eg. IIA, CPA, CSA and ICAA). [AAU Goal 3]
Internationalisation	The control and monitoring of off-shore activities has been identified as an auditable area of the University.  This is included in the risk assessment process and included in relevant annual audit work programs.  [AAU Goals 1 and 2]
Consolidation	The Audit and Assurance Unit annual audit work program includes visits to JCU Cairns and the Mt Isa site and other off-campus activities. [AAU Goals 1, 2 and 3]
Integration	A major component of the Audit and Assurance Unit resources are employed to ensure that management and administration systems and practices of the University are accountable, cost-effective and equitable. [AAU Goals 1 and 2]
Sustainability	During the performance of its audits, the Audit and Assurance Unit promotes prudent financial management and cost-effective controls to ensure there is an adequate level of accountability throughout the University and to minimise resource wastage. [AAU Goals 1 and 2]

 

Approval and Review of Strategic Plan

This strategic plan is prepared for 3 audit years commencing 2007/08.  [Note that the Audit and Assurance Unit audit year is from June to May, to facilitate the finalisation of the external audit of the University’s financial statements.]

 

The strategic plan will be approved firstly by the Vice-Chancellor and then by the Audit & Compliance Committee at its June meeting.

 

An annual review of the strategic plan will be conducted in May each year and a six-monthly review will be conducted in November each year to ensure it is relevant and up-to-date.  The strategic plan may be amended during the audit year if circumstances warrant such action and upon approval by the Audit and Compliance Committee.

 

Progress on implementation of the strategic plan will be provided to the Audit and Compliance Committee on a six-monthly basis.  A final report on the implementation of the strategic plan for the audit year will be included in the Audit and Assurance Annual Plan.

 

 

Legislative Context

This strategic plan is also prepared in accordance with section 78(a) of the Financial Management Standard 1997 (Qld) which states:

 

“An agency’s internal audit function must prepare a strategic audit plan that provides an overall strategy for the internal audit function over a period of more than 1 year”.

 

Linkage to Audit and Assurance Unit Annual Work Program

 

This strategic planning document sets out the Audit and Assurance Unit’s operations for the next three (3) years.  It also forms the basis of the annual audit work program for the three (3) year period identified.

 

Resources are allocated within the annual audit work program to address the strategic goals where specific resources are required and then the operational goals which are identified through the risk assessment process.

 

 

The purpose of the Audit and Assurance Unit is to be a professional, independent internal audit function of best practice standard, which provides maximum benefit to the University.

 

This is achieved through conducting efficient and effective audits of the University’s systems and services, and providing management with independent and objective information, advice and assurance on areas covering risk management, internal controls and corporate governance.

 

The core values of the Audit and Assurance Unit are to:

 

Ž            demonstrate a commitment to ensuring the integrity of financial and operational management;

Ž            provide awareness and high quality advice to University management and staff on policy, procedures, good practice and proper conduct;

Ž            promote a safe and healthy working environment

Ž            promote ethical behaviour;

Ž            promote good corporate governance and effective risk management; and

Ž            demonstrate professionalism, integrity and discretion.

 

To perform our mission, the Audit and Assurance Unit has identified the following three (3) goals:

 

1.    Provide strategic support to the University by performing independent appraisals and reporting the results of these to University management, with a focus on control structures, risk exposures and legislative requirements.

 

2.    Ensure that the Audit and Assurance Unit provides maximum value to the University.

 

3.    Achieve an independent audit and assurance function of best practice standard, with a focus on continuous improvement.

 

The individual strategies, targets and timing for these goals are identified in the following matrices.  Also included are performance indicators to measure the Audit and Assurance Unit achievement of the individual targets and strategies, and subsequently the overall goals.

 

Supplementing these strategic goals, are operational goals.  Our operational goals are based on the results of the risk assessment process conducted in May each year.  The very high and, to some extent, the high risk areas identified are included in the annual audit work program.  More detail is provided in the “Operational Goal” section of this document.

 

 

STRATEGIC GOALS FOR 2006/07 to 2008/9

MEASUREMENT AGAINS