INTERNAL AUDIT CHARTER
Function
1.
Internal Audit is an independent review function that is responsible for
providing an objective appraisal of all aspects of risk management and control
throughout the GMC. Internal Audit provides a service to the Council and all levels of
management. It is responsible for providing the Council, through its Audit Committee,
with assurance on the arrangements for risk management and internal control.
Independence
2.
Internal Audit is independent of the activities that it audits to ensure the
unbiased judgements essential to its proper conduct and impartial advice to
management. As such it has no executive role, nor any responsibility for the
development, implementation or operation of systems.
Role and Scope
3.
The role of Internal Audit is to understand the key risks of the GMC and to
examine and evaluate the adequacy and effectiveness of the system of risk
management and internal control as operated by the GMC. Internal Audit, therefore,
has unrestricted access to all activities undertaken in the GMC, records, information
and assets necessary to review, appraise and report on:
a.
The adequacy and effectiveness of the systems of financial,
operational and management control and their operation in practice in relation
to the business risks to be addressed.
b.
The extent of compliance with policies, standards, plans and
procedures established by the Council and the extent of compliance with
external laws and regulations, including reporting requirements of regulatory
bodies.
c.
The extent to which assets and interests are acquired economically,
accounted for and adequately safeguarded.
d.
The suitability, accuracy, reliability and integrity of financial and other
management information and the means used to identify, measure, classify
and report such information.
e.
The integrity of processes and systems, including those under
development, to ensure that controls offer adequate protection against error,
fraud and loss of all kinds; and that the processes align with the GMC’s
strategic goals.
f.
The follow-up action taken to remedy weaknesses identified by Internal
Audit review, ensuring that good practice is identified and communicated
widely.
g.
The operation of the GMC’s corporate governance arrangements.
Reporting
4.
Internal Audit reports regularly on the results of its work to the Audit
Committee. The Head of Internal Audit is accountable to the Audit Committee for:
a.
Providing the Council, through its Audit Committee, with assurance on
the arrangements for risk management and the system of internal control.
b.
Regular assessments of the adequacy and effectiveness of the GMC’s
systems of risk management and internal control based on the work of
Internal Audit.
c.
Reporting significant control issues and potential for improving risk
management and control processes.
d.
Providing information on the status and results of the annual audit plan
and the sufficiency of Internal Audit resources.
Responsibility
5.
The Head of Internal Audit is responsible for:
a.
Developing and implementing an audit strategy and plan based on an
understanding of the significant risks to which the GMC is exposed.
b.
Submitting the strategy and plan to the Audit Committee for review and
agreement.
c.
Reporting to management the results of individual audit assignments.
d.
Maintaining a professional audit team with sufficient knowledge, skills
and experience to deliver the plan.
e.
Ensuring internal audit work is performed with due professional care
and in accordance with appropriate professional auditing practices and
standards.
f.
Liaising with the external auditors to optimise the audit services
provided to the GMC.
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