It is the policy of the Board of Trustees to maintain an independent and objective Internal Audit function to provide value-added audit and advisory services to Albion College.
Internal Audit has four primary responsibilities:
- Financial and Management Information Integrity - Provides the Board of Trustees and senior management with increased assurance that financial and other management information is accurate and credible.
- Internal Control – Monitors and evaluates the effectiveness and efficiency of the College's internal control environment and processes.
- Operational Improvements - Evaluates operations to identify process-improvement and cost-savings opportunities for management action, and assists in communicating and implementing best practices within and between departments on campus.
- Audit Coordination - Coordinates internal audit programs with the external auditors to ensure the economical and effective completion of the annual audit of financial statements.
In carrying out its duties and responsibilities, Internal Audit will have full, free, and unrestricted access to all activities, records, property, and personnel that are under the purview of the Board of Trustees.
Internal Audit shall be independent of the activities audited and shall assert no direct responsibility or authority over activities reviewed. Internal Auditors should not develop and install procedures, prepare records, or engage in activities that would normally be evaluated by Internal Audit.
Internal audits are performed in all significant areas of the College and are prioritized according to a risk-based audit plan that is approved annually by the Audit and Compliance Committee of the Board of Trustees. Additional reviews may be performed at the request of the Board of Trustees or senior management. Resolutions of audit findings are sought during the performance of each audit. Management of each area is responsible for responding to the recommendations of Internal Audit promptly following receipt of a report containing those recommendations.
Internal audit reports with findings, recommendations, and management responses are forwarded to the Chairman of the Audit and Compliance Committee of the Board of Trustees, the President, and the Vice President for Finance and Administration for review and approval prior to issuance. The status of management responses will be monitored by Internal Audit on a regular basis to ensure that audit findings are resolved in a timely and effective manner.
Internal Audit reports functionally to the Chairman of the Audit and Compliance Committee of the Board of Trustees and administratively to the Vice President for Finance and Administration.
PROFESSIONAL STANDARDS AND CODE OF ETHICS
Internal Audit subscribes to and intends to comply with all applicable professional standards and codes of ethics, including the Institute of Internal Auditors' "Standards for the Professional Practice of Internal Auditing."