Introduction Internal Audit is an independent and objective assurance and consulting activity that is guided by a philosophy of adding value to improve the operations of William Paterson University of New Jersey. Internal Audit assists University management and the Audit Committee of the Board of Trustees, in accomplishing their objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the University’s risk management, control, and governance processes. Role The Internal Audit activity is established by the Audit Committee of the Board of Trustees. The internal audit activity’s responsibilities are authorized by the Committee as part of its oversight role. Purpose The Internal Audit Office of William Paterson University operates under this Internal Audit Charter, which establishes the authority, responsibilities, and framework for the internal audit function. This charter aligns with the standards set forth by the Institute of Internal Auditors (IIA) and aims to provide independent and objective assurance and consulting services designed to add value and improve the university's operations. Authority The Internal Audit Office is authorized by the Board of Trustees and administratively reports to the President of William Paterson University. The Chief Audit Executive (CAE) is responsible for the overall management and operations of the Internal Audit Office. Independence and Objectivity The Internal Audit Office shall remain independent and objective in performing its duties. It shall maintain a reporting relationship that allows for the proper execution of its responsibilities without undue influence from management or other parties. Responsibilities 4.1 Internal Audit Activities: The Internal Audit Office shall conduct audits, reviews, and consulting engagements to evaluate the effectiveness of governance, risk management, and internal control processes across the university. 4.2 Risk Assessment and Planning: The Internal Audit Office shall annually assess risks and develop a risk-based audit plan, which shall be approved by senior management and the Audit Committee of the Board of Trustees. 4.3 Audit Execution: Audits shall be conducted in accordance with the International Standards for the Professional Practice of Internal Auditing (Standards) issued by the IIA. Auditors shall maintain objectivity and due professional care in the execution of their duties. 4.4 Reporting: The Internal Audit Office shall communicate audit findings, recommendations, and management responses to relevant stakeholders, including senior management, the Audit Committee, and other appropriate parties. 4.5 Follow-Up: The Internal Audit Office shall monitor and track the implementation of audit recommendations and report on the status of corrective actions to senior management and the Audit Committee. Professional Standards The Internal Audit Office shall adhere to the Standards issued by the IIA, including the Code of Ethics and the Definition of Internal Auditing. The CAE and internal audit staff shall maintain competence through ongoing professional development activities. Quality Assurance and Improvement Program The Internal Audit Office shall establish and maintain a Quality Assurance and Improvement Program (QAIP) to assess the effectiveness and efficiency of the internal audit function. The QAIP shall include periodic internal and external assessments and follow-up on identified opportunities for improvement. Communication and Access The Internal Audit Office shall have unrestricted access to all university records, personnel, and physical properties necessary to fulfill its responsibilities. The CAE shall regularly communicate with senior management, the Audit Committee, and other relevant stakeholders regarding the internal audit activities and findings. Review and Approval This Internal Audit Charter shall be reviewed annually by the Audit Committee and updated as necessary to ensure its continued relevance and effectiveness. Any amendments to the charter shall be approved by the Audit Committee. Acknowledgment By accepting their positions, the CAE and internal audit staff acknowledge their responsibilities under this Internal Audit Charter and agree to comply with its provisions. Signed: Ellen Caravella, Internal Audit Director Date: June 6, 2024 This charter provides a comprehensive framework for the Internal Audit Office of William Paterson University, ensuring alignment with the standards and principles set forth by the Institute of Internal Auditors.
