2016-11-14 General Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA   8 NOVEMBER 2016




                                                      Page 12 of 111

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                     8 NOVEMBER 2016

       COUNCIL POLICY - INTERNAL AUDIT

       Authority
       Internal Auditors, in the course of their duties, have full, free and unrestricted access to all records,
       monies, materials, assets, property and personnel and are permitted to examine all transactions,
       review all policies, procedures and functions in Council.
       Information acquired by Internal Audit in the course of an audit must remain confidential and must
       not be used for purposes outside the scope of the audit review.
       All members of management and staff must fully co-operate with internal audit in relation to matters
       subject to review.
       The internal audit function shall be performed by proficient and experienced auditor/s who hold a
       level of professional membership as outlined below:
       e   Ordinary membership or above of the Institute of Internal Auditors in Australia or
       e   CPAor above (CPA Australia) or
       e   CAor above (Institute of Chartered Accountants in Australia) or
       e   IPAor above (Institute of Public Accountants)

       Audit Reports and Recommendations
       At the completion of an audit, internal audit will discuss their findings and recommendations with the
       appropriate officers concerned to ensure that internal audit and management agree on the findings
       and jointly develop any recommendations considered necessary. A final report will then be issued to
       the Audit and Risk Committee via the CEO.

       At the request of the Audit and Risk Committee (in consultation with the CEO) Fhe internal audit
       function may atthe request of the Audit and Risk- Committee be required to provide a a report
       summarising significant issues arising out of audits undertaken during the year_—It may also be
       required to provide independent verification that any high risk issues have been addressed, and to
       undertake an assessment of the implementation of audit recommendations. The report may include:
       reference to areas where weaknesses were encountered; suggested remedial measures and any
       general observations or recommendations considered appropriate; and a summary of management
       actions taken or not taken in response to audit recommendations.
       The CEO will co-ordinate the review of the implementation of internal audit recommendations and
       report progress and any associated issues to the Risk and Audit Committee on at least a quarterly
       basis.

       Relationship between Internal Audit and External Audit
       In accordance with the Financial Accountability Act 2009 all Queensland public sector organisations
       are to be held accountable for the administration of the state’s finances and are subject to a
       financial audit each financial year. The Queensland Audit Office undertakes financial and
       performance audits relating to Council’s financial reports and performance audits which focus on the
       performance of public sector entities, and how effectively, efficiently and economically their
       objectives are being met.
       Internal audit will collaborate with the appointed external auditor with respect to all internal audit
       engagements conducted, as required, to facilitate the audit coverage and avoid duplication of work.
       Both the internal auditor and external auditor may approach the Audit and Risk Committee
       Chairperson directly on any matter.

                                                                                          Page 12 of 111