1.1. The Internal Audit Division (BhAD) of Sultan Idris University of Education (UPSI) has been established on February 1, 2000 with the approval of the University Board (LPU) through the 11th LPU Meeting.
1.2. The Internal Audit Division (BhAD) was established as an independent, objective and carry out auditing and negotiation activities for value improvement in operations and UPSI administration. BhAD helps UPSI achieve its objectives systematically and be disciplined to evaluate and enhance the effectiveness of risk management, control internal and governance of UPSI and its responsibility centers.
2. Role
Establishment of Internal Audit is through the University Board in accordance with the LetteR General Circular of Prime Minister’s Department Bill. 3, 1998. Internal Audit plays a role is important in assisting the University’s Board of Directors in performing its functions oversight.
The vision of BhAD is to be an excellent entity and to be a source of reference with provide auditing and advisory services in line with UPSI’s vision.
BhAD’s mission is to increase accountability and ensure the use of resources economically, efficiently and effectively through independent, professional and quality audit services to achieve educational aspirations in human and community development.
BhAD executes its administration and functions in accordance with the guidelines issued by the Institute of Internal Auditor’s Malaysia (IIAM) including the definition of Internal Audit, Auditors’ Code of Ethics and International Standards for the Professional Practice of Internal Auditing. This guide contains the essential principles for the practice of Internal Audit professionals as well as to evaluate the effectiveness of Internal Audit performance. Internal Auditor’s Practice Advisories, Practices Guides and Position Papers issued by the IIA will also be used as a guide in conducting audits. In addition, Internal Audit activities are guided by relevant policies and procedures set by the University, the Treasury and other recognized professional bodies as well as standard operating procedure manuals.
BhAD is fully authorized, independent and unrestricted in obtaining or examining all records, physical assets and matters relating to UPSI staff in the performance of its audit work. All employees involved must cooperate with BhAD to fulfill its duties and responsibilities.
Chief BhAD is responsible for reporting administrative matters to the Vice-Chancellor from time to time. As for the reporting of the audit function, the Head of BhAD is responsible for reporting directly to the University Audit Committee (JKA) through JKA Meetings held at least four (4) times a year to present the audit report issued.
8.1. BhAD’s activities are always free from the interference of any party in UPSI Management including matters involving the selection of auditing titles, scope of audits, auditing procedures, frequency of auditing, duration or content of audit reports to maintain the necessary independence.
8.2. The Internal Auditors are not directly involved in the operations or activities of any audited matter. As such, the Internal Auditor shall not be involved in the exercise of internal controls, drafting of procedures, system development, preparation of records or engaging in any activities that may adversely affect the internal auditors’ evaluation.
8.3. Internal Auditors need to demonstrate the highest level of professionalism and objectivity in collecting, evaluating and disseminating information on audited activities or processes. The Internal Auditor must make a balanced assessment of all the circumstances and cannot be influenced by his or her own interests in making an assessment.
BhAD is responsible for reviewing, analyzing, investigating, evaluating and giving opinions, opinions and suggestions on any aspect, activity, function or operation of UPSI. The main objective of BhAD is to assist the LPU and UPSI Management to perform their duties and responsibilities more effectively. To this end, BhAD will carry out the following audit tasks: –
9.1. Reviewed the implementation of UPSI policies and activities and its responsibility center for a period of time to determine whether the functions of planning, supervision, direction and control are based on management policies, directives and regulations and are effectively implemented in line with good management objectives and practices.
9.2. Assess the reliability and integrity of the information and methods used to identify, measure, classify, and report that information.
9.3. Determines the reliability and effectiveness of the system of internal control and operation monitoring.
9.4. Review the accuracy and validity of financial information and identify ways to measure, type and report the information.
9.5. Review existing systems to ensure that they are in line with policies and regulations, especially areas that have operational impacts and determine whether UPSI complies with them. If necessary, suggest appropriate policies.
9.6. Evaluates UPSI risk management.
9.7. Review appropriate ways to protect the asset and verify the existence of the asset.
9.8. Assess the benefits and effectiveness of existing resource utilization, identify opportunities for increasing resource utilization and suggest ways to address related issues.
9.9. Reviewing the organization’s journey and implementation of the program to determine whether the results are in line with the objectives set and whether they have been implemented as planned.
9.10. Coordinates BhAD tasks with External Audits.
9.11. Perform consultations and advisory services related to the governance and internal controls appropriate to the University’s operating system.
9.12. Become an advisor and observer in the development of computer-based management systems in particular:
i. Internal control features,
ii. Characteristics of accuracy, and
iii. The ability to record documentation so that the developed system can help UPSI achieve its goals.
9.13. Submit the annual audit work schedule to the Vice Chancellor and the JKA for consideration and approval.
9.14. Report to management who should take action on an audit strike.
9.15. Reporting employees found to be abusive.
9.16. Ensures that all planning and actions taken by UPSI have taken into account previous audit views based on the audit reports distributed.
9.17. Evaluate all plans and actions taken in accordance with the audit reports
9.18. To submit quarterly reports to JKA including the following: –
i. Follow up actions that have been taken on the findings of the audit are important,
ii. Improved operational efficiency and smoothness, as a result of audit actions,
iii. Coordination of Internal Audit and External Audit to avoid overlap,
iv. Audit work planning and
v. Obstacles encountered in performing audit work.
The Head of BhAD shall submit the Annual Audit Plan annually to the Vice-Chancellor and the Audit Committee for consideration and approval. The Annual Audit Plan is prepared on the basis of universal audits using risk assessment methods including inputs from the University Management and the Audit Committee. Any changes to the approved Annual Audit Plan will be communicated to the Audit Committee.
11. Reporting and Monitoring
11.1 The audit report will be prepared and issued by the Head of BhAD upon the completion of the audit. The audit report will be forwarded to the Head of Responsibility Center and one (1) copy to the Vice Chancellor. The audit report will be presented to the Audit Committee on a quarterly basis.
11.2 Monitoring reports containing feedback from the Responsibility Center and corrective actions taken on audit findings and recommendations. Feedback from the Responsibility Center must include any corrective action / correction and evidence of action taken.
11.3 Compliance and Integrity Unit, Govenan Division and BhAD are responsible for following up on the findings and proposed improvements as agreed. Important discoveries will remain open issues until they are resolved.
11.4 BhAD will also conduct an internal review / review of the work carried out.
12. Periodic Reporting
The Head of BhAD will periodically report to the UPSI Vice Chancellor and the Audit Committee on the objectives, powers and responsibilities and performance related to the planning of the Internal Audit activities. Reporting also includes exposure to fraud risks, governance issues and other matters as needed. The Head of BhAD is responsible for making periodic assessments of what is stated in the charter for the purpose of assuring the quality and objectives of the Internal Audit.