Review Of The Audit And Risk Committee Charter & Review Of The Internal Audit Policy · Attachment 2_Internal Audit Policy_Draft

INTERNAL AUDIT POLICY



10. Independence
To be effective, the Internal Audit function must be able to operate without being influenced or
restricted when undertaking its responsibilities. For this purpose, the Internal Audit function
reports directly to the Chief Executive Officer.


11. Authority
The Internal Auditor, 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
the Internal Auditor during 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 the Internal Auditor 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:

   Ordinary membership or above of the Institute of Internal Auditors in Australia or
   CPA or above (CPA Australia) or
   CA or above (Chartered Accountants Australia and New Zealand) or
   IPA or above (Institute of Public Accountants)
The Internal Auditor also has direct access to the Chair of the Audit and Risk Committee, as
required.


12. 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 (external
audit) 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. The Internal Audit
function will collaborate with External Audit 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 at any time.


13. Management Actions
The relevant operational Manager is responsible for ensuring that corrective action on
recommendations made or deficient conditions reported by the Internal Auditor and External
Auditor are completed within the agreed timeframes. The Audit and Risk Committee will
monitor the implementation of audit recommendations. Recommendations are considered
outstanding until audit actions or hold a status of ‘complete’ and the deficiency is rectified.
The progress of implementing recommendations and associated actions is reported to the
Audit and Risk Committee on a quarterly basis. If the operational Manager foresees difficulties
implementing the recommendations within the agreed time frame, the Manager should advise

                                                                                          Page 12