Internal Audit

The Office of Internal Audit will: 

• Develop a flexible annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, and submit the plan to the Audit Committee of the Board of Regents.
• Implement the audit plan, as approved by the Audit Committee of the Board of Regents, including as appropriate any special tasks or projects requested by management and the Board of Regents.
• Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this Charter.
• Evaluate and assess significant new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.
• Review the status of the Board of Regents’ policy implementation.
• Review the effectiveness with which University of Wisconsin System has implemented state or federal requirements.
• Conduct research and analysis in operational areas of interest to the Board of Regents.
• Issue periodic reports to the Audit Committee of the Board of Regents summarizing the results of audit activities.
• Provide to management and the Audit Committee of the Board of Regents information related to emerging trends and successful practices in internal auditing.
• Provide consulting services to University of Wisconsin System management by conducting targeted studies to assist management in meeting its objectives, the nature of which is agreed to with management, and for which the Office of Internal Audit assumes no management responsibility. 
• Maintain a positive working relationship with the State of Wisconsin Legislative Audit Bureau, the organization’s external auditor.
• Assist in the investigation of suspected fraudulent activities within the University of Wisconsin System and notify the management and Audit Committee of the Board of Regents of the results, as appropriate.
• Request from individuals responsible for the subject matter of reports of the Office Internal Audit a response to specific findings and recommendations, including a timetable for anticipated completion of corrective action(s) to be taken or an explanation for any corrective action(s) that will not be implemented.
• Establish a follow-up process to monitor and identify whether corrective actions have been effectively implemented, or whether senior management has accepted the risk of not taking action.
• Consider the scope of work of the external auditors and regulators as appropriate for the purpose of providing optimal audit coverage to the institution.
• Review and update the Office of Internal Audit Charter, as necessary, and periodically provide the Charter to the Audit Committee of the Board of Regents for review and approval.
• Follow the International Standards for the Professional Practice of Internal Auditing and its Code of Ethics.

The Office of Internal Audit is authorized to: 

• Have unrestricted access to all functions, records, property, and personnel relevant to its responsibilities.
• Audit the accounts of the University of Wisconsin System organization, as defined in note 1 to the System’s annual financial statements.
• Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.
• Obtain the necessary assistance of personnel in areas of the University of Wisconsin System where audits are being performed, as well as other specialized services from within the University of Wisconsin System.
• Maintain the independence necessary to render objective reports by assuring all audit activities (including audit scope, procedures, frequency, timing, and report content) are free from influence by auditee. 

The Office of Internal Audit is not authorized to: 

• Perform any operational duties for the University of Wisconsin System, its campuses, or its affiliates. Internal auditors will have no direct operational responsibility or authority over any of the activities audited. Accordingly, internal auditors will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair an internal auditor’s independence of judgment.
• Initiate or approve accounting transactions external to the Office of Internal Audit.
• Direct the activities of any organization employee not employed by the Office of Internal Audit, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors. 

Internal audit reviews do not, in any way, substitute for or relieve other University of Wisconsin System personnel from their assigned responsibilities.

The Chief Audit Executive shall report to the Board of Regents through the Audit Committee directly and to the System President. The System President and the Chair of the Audit Committee have joint responsibility for the hiring, performance evaluation and compensation of the Chief Audit Executive.

The Office of Internal Audit will exercise professional objectivity in gathering, evaluating, and communicating information about the activity or process subject to audit. Furthermore, the staff of the Office of Internal Audit will strive to make a balanced assessment of all the relevant circumstances and not be unduly influenced by personal interests or by others in forming judgments. 

The Office of Internal Audit will carry out its responsibilities in accordance with University of Wisconsin System policies, state law, and federal law. Additionally, the Office of Internal Audit recognizes the mandatory nature of the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing, which are part of the International Professional Practice Framework (IPPF), which is the conceptual framework that organizes authoritative guidance promulgated by the Institute of Internal Auditors. All policies and procedures implemented by the Office of Internal Audit will adhere to the IPPF.