Internal Audit Standard Operational Procedure Manual - Mauritius

Government of Mauritius MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT

INTERNAL CONTROL CADRE

Internal Audit Standard Operational Procedure Manual

( IASOPM )

April 2013

TABLE OF CONTENT

PREFACE................................................................................................................................... I

1.0 INTRODUCTION ....................................................................................................... 1

2.0 DUTIES AND RESPONSIBILITIES........................................................................ 2

Duties and Responsibilities of the Director Internal Control (DIC)

2

Duties and Responsibilities of the Officer in Charge (OIC) Internal Control 3

Duties and Responsibilities of the Head of Audit (HOA)

4

Duties and Responsibilities of ICO

5

3.0 OPERATING PROCEDURES................................................................................... 6

Internal Audit Charter

6

Vision and Mission

6

Audit Objectives

6

Relations with Management

8

Relations with External auditor

9

Special Assignments

9

Follow-up on Internal Audit Reports

9

4.0 PLANNING AND PERFORMANCE ..................................................................... 10

Internal Audit Strategic and Annual Planning

10

Audit Planning

21

5.0 FIELDWORK PHASE............................................................................................. 30

Evaluating Internal Controls

30

6.0 INTERNAL AUDIT WORKPAPERS ................................................................... 34

7.0 MANAGEMENT OF AUDIT .................................................................................. 41

8.0 QUALITY ASSURANCE AND IMPROVEMENT PROGRAM ......................... 43

9.0 INTERNAL AUDIT APPROACH TO FRAUD.................................................... 48

10. AUDIT OF COMPUTERISED SYSTEMS ............................................................ 52

Introduction

52

Implications for Internal Audit Work

52

Computer Assisted Audit Techniques ("CAATs")

53

Internal Controls in a computer environment

54

11. APPENDICES .......................................................................................................... 56

Internal Audit SOPM

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Internal Audit SOPM

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Preface

PREFACE

This Internal Audit Standard Operational Procedure Manual (IASOPM) establishes the procedures to be followed in the conduct of internal audit. The IASOPM aims at standardizing internal audit in terms of uniformity and consistency across all Internal Control Units (ICU). The IASOPM has been prepared in line with the International Standards for the Professional Practice of Internal Audit, which are developed and maintained by the Institute of Internal Auditors (IIA). Internal Control Officers (ICOs) must comply with the provisions contained in this document which forms an integral part of the Internal Audit Policy and Operational Manual issued under Financial Instructions No 22 of 2012.

Internal Audit SOPM

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1. INTRODUCTION

Introduction

1.1 The IIA provides the following definition of internal audit: Internal audit is an independent objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

1.2 In the Public Service internal audit activities are conducted by the Internal Control Cadre (ICC) which falls under the aegis of the Ministry of Finance and Economic Development (MOFED).

1.3 The objectives of internal audit are :(a) evaluating of control systems; (b) ensuring compliance to rules, procedures and regulations; (c) evaluating organizational efficiency and effectiveness; (d) assessing accuracy and reliability of Departments' reporting processes; (e) evaluating effectiveness of Departments' accountability framework, and the extent of adherence to ethical standards; and (f) ensuring audit findings and recommendations add value to the organization and provide an independent opinion whether the organizational goals and objectives have been achieved in an economic, efficient and effective manner.

Internal Audit SOPM

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