Append below are the recommendations from CIMA’s guideline re: A Framework For Internal Controls pertaining to the suggested terms of reference for an Internal Audit. Hopefully, below might be useful for those self-starters who wish to initiate terms of reference for their internal auditing role:
Internal Audit’s Terms Of Reference
1. Internal Audit is an independent review function established by management to review the internal control system as a service to the organization.
2. Internal Audit is independent of the activities which it reviews to ensure it provides the unbiased judgements essential to its proper conduct and impartial advice to management.
3.Internal Audit has unrestricted access to all activities undertaken by the organization in order to review, appraise and report on:-
· the adequacy and effectiveness of the systems of financial and managerial control and their operation in practice;
· the suitability, reliability and integrity of financial and other management information and the means used to identify, measure, classify and report such information;