(a)

Internal audit in the public sector refers to an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Internal audit in the public sector covers a wide range of areas, including financial management, operational processes, compliance with laws and regulations, risk management, governance practices, and the effectiveness of programs and services.
Internal audit functions under the Public Financial Management Act 2016 (Act 912) are:

• Appraise and report on the soundness and application of the system of controls operating in the covered entity.
• Evaluate the effectiveness of the risk management and governance process of a covered entity and contribute to the improvement of that risk management and governance process.
• Provide assurance on the efficiency, effectiveness, and economy in the administration of the programs and operations of a covered entity; and
• Evaluate compliance of a covered entity with enactments, policies, standards, systems, and procedures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (b)

  The Audit Committee performs its advisory roles and responsibilities by:

  • Providing advice on sound, transparent, and reliable financial management practices,
  • Ensuring the risk management process is comprehensive and effective.
  • Helping achieve organization-wide strong and effective internal controls in the covered entity.
  • Reviewing corporate policies relating to compliance with laws and regulations, ethics, conflicts of interest, and investigations of misconduct and fraud.
  • Reviewing current and pending corporate governance-related litigation or regulatory proceedings to which the covered entity is a party.
  • Ensuring the internal auditors’ access to the Audit Committee, encouraging communication beyond scheduled Committee meetings.
  • Reviewing internal audit work plans, internal audit charters, risk (including fiscal risk) assessment reports.
  • Ensuring the development, approval, and update of the code of conduct. The Committee should also ensure that all employees receive the code of conduct, understand it, and obtain appropriate training regarding it.
  • Follow up on significant issues, investigations, and disciplinary actions.
  • Collaborating with the Internal Audit Agency to initiate investigations into matters involving fraud or misuse of public funds by the Spending Officer.
  • Reviewing audit reports for assurance on efficiency, effectiveness, and economy in the administration of programs and operations of the covered entity.