Professionalism

The governance and activities of Internal Audit are carried out in such professionalism based on below criteria:

i. The guidelines include a mandatory Institute of Internal Auditors definition of Internal Auditing, Code of Ethics and International Standards for the Professional Practice of Internal Auditing (Standards). The guideline stipulates mandatory principles of the basic requirements for the professional

practice of internal auditing and for evaluating the effectiveness of the performance of the Internal Audit ;

ii. Policies and procedures of UNIMAS

iii. Internal Audit Manual

iv. Code of Ethics Of Internal Audit

Authority

In carrying out duties and responsibilities, Internal Audit is authorized with no costs and barriers to;

i. Have discussion with line managers and employees of UNIMAS to gain explanations and information required at any reasonable time

ii. Inspect and obtain copies of all University’s record, minutes, books, documents and any others types of information of all CoR subjected to Audit

iii. Inspect and obtain any information from any technological equipment used by the employees

iv. Review and evaluate policies, plans, rules and records of University

v. Obtain advice from any officers / staff of University or any civil services or professional bodies on related issues

vi. Get access to all facilities of the CoR such as system, copiers, scanners and other peripheral facilities for Audit purposes

vii. With subjected to the approval of the Board Of Directors (BOD), Audit Committee, Vice Chancellor and Higher Management of UNIMAS, Internal Audit Division is authorized to examine on any activities in certain aspects without prior notice where the situation required

viii. All officers / staff of the University is obligated and required to fully cooperate with the Internal Audit to enable it to perform its duties objectively and effectively. Internal Audit is responsible for ensuring that all information obtained is handled with the utmost caution , confidentiality , honesty and sincerity as outlined in code of professional ethics of internal auditors to ensure that the element of " CONFIDENTIAL" is adhered and maintained in compliance with the Acts and procedures regarding the use of information kept adopted at the University

Responsibility

Scope of Internal Audit shall include but not limited to the inspection and evaluation of the adequacy and effectiveness of governance, risk management and internal control processes of the University and the quality of performance in carrying out assigned responsibilities. Internal Auditor should ensure that the goals and objectives of the University are achieved by implementing the following:

i. Review organization to determine whether the function of planning, supervision, direction and control policies, management rules and regulations have been implemented effectively in line with the objectives and good management practices.

ii. Determine the reliability and effectiveness of internal control systems and surveillance operations

iii. Review existing systems to ensure they are consistent with the policies and regulations, particularly in areas that affect the operation and determine whether the organization is in compliance. Internal Audit will propose necessary policy when needed

iv. Review appropriate measures to protect the assets of the University

v. Assess the benefits and effectiveness on the utilization of available resources and identify opportunities to improve resource utilization and suggest ways to overcome the problems associated

vi. Review the organization journey and implementation of programs to ascertain whether results are consistent with the objectives being set , and whether it has been implemented as planned

vii. Coordinate tasks of internal audit with external audit

viii. Participate in planning, designing, building , implementing computer -based management system especially from the aspect of control features , characteristics of accuracy , the ability to record documentation so that the developed system can accommodate the University to achieve its goals

ix. Submit an annual audit schedule to the Vice -Chancellor and Audit Committee for consideration and approval

x. Report to the management regarding those who are supposed to take action on Internal Audit findings

xi. Report to management regarding officer / staff found to have committed abuses.

xii. To ensure that all planning and actions made by the University has taken into account the views of previous audits

xiii. Evaluate all plans and actions taken in accordance with the Internal Audit recommendations

xiv. To submit quarterly reports to the Audit Committee, which include the following:

i. Follow-up action taken on the findings of Internal Audit which is important;

ii. Increased efficiency and smooth operation, mainly the result of the audit recommendations;

iii. Synchronization of Internal Audit and External Audit findings to avoid duplication;

iv. Internal Audit work plan; and

v. Obstacles encountered during the execution of audit work.

Organization

Office of Internal Audit is an independent unit which is placed under the administration of the Chancellery and responsible directly to the Vice Chancellor for administrative matters such as human resources and finance. For reporting functions associated with auditing and consulting, Head of Internal Audit is responsible for reporting to the Audit Committee through Audit Committee meetings which are conducted at least four (4) times a year. The Selection Committee is empowered by the support and approval of the Audit Committee for the appointment of the Head of Internal Audit. The Board will establish the terms and other conditions for the appointment of the Head of Internal Audit.

Independence and Objectivity

Internal Auditor is free from any barriers that exist within the organization including audit topic selection, scope, procedures, frequency, timing or content of the reports to maintain an independent attitude and objective mind. Internal Auditor would not hold any direct responsibility towards operational activities or control over any other activity that may affect consideration of Internal Auditors. Internal Auditor must exhibit objectivity professionally at the highest level in collecting, evaluating and communicating information about the activity or process being examined. Internal Auditor should make a balanced assessment of all relevant circumstances and not be influenced by their own interests or by others in making judgments.

Internal Audit Planning

Head of Internal Audit is responsible for preparing and submitting the annual internal audit program schedule for the approval of the Audit Committee before 31st January and human resource planning and budget for the current year. Internal audit program schedule shall be prepared based on the priorities of the Audit Universe using a risk-based approach including input from Vice-Chancellor, the Audit Committee and the Board of Directors of the University. Any significant change from the approved schedule must be communicated to the Audit Committee through report on current status of activities at regular intervals.

Reporting and Monitoring

A written report will be prepared after the completion of each audit assignment. This report contains the conclusions of audit findings, recommendations made and actions taken by the auditee. Internal Audit report should be prepared and completed within a period not exceeding 20 working days after the audit work is completed. A complete Internal Audit Report issued will be sent to the auditee with a copy to the Audit Committee, and Vice-Chancellor and Management of University. Audit reports can also be distributed to other CoR if necessary. Internal Audit is responsible for conducting further audits / reviews to follow up on the findings raised from time to time.

Periodic Evaluation

The purpose, authority, responsibility, and performance of the Office of Internal Audit will always be reported and evaluated by the Vice-Chancellor and Audit Committee from time to time to ensure the suitability and currents need to be fulfilled. In addition, periodic assessment of this aspect must emphasize following items:

i. Risk exposures and control issues; including fraud risks, governance issues and other matters.

ii. Quality assurance and improvement program

iii. Internal and external assessments made on Internal Audit

Head of Internal Audit is responsible for making periodic assessment of the matters set out in the charter to ensure that it is sufficient to enable auditing activities to achieve the objectives. The result of this periodic assessment should be communicated to the University Management, Audit Committee and Board of Directors.