Citizen Charter

This Charter of the Directorate of Audit defines the internal audit’s purpose, authority and responsibility.

Vision

To ensure uniformity and consistency in the Internal Audit functions and enhances good governance across the various departments of the State of Uttarakhand.

Mission

To bring a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance through internal audit.

Scope

• The internal control system within the organization is functioning efficiently and effectively to achieve the organization’s vision, mission and objectives.
• The entities audited are complying with all the applicable laws and are carrying out the assigned activities and operations and implementing the programs, projects and schemes as planned and required under the rules and regulations.• Whether the government resources are used for the purpose for which it was sanctioned in an economical and efficient manner
• Whether the financial reporting and operational results are reflected truly and accurately in a timely manner in accordance with applicable policies, standards, guidelines and government orders.
• Government assets are safeguarded under the control of the audited entity.

Authority

1. The Uttarakhand Audit Act, 2012 under section 6(4) has given the authority to Auditor in connection with the
   performance of their duties as below:
2. to inspect the accounts of auditable units including physical verification of assets, such as cash, valuables and stores;
   to require that any registers, books, papers and other documents which deal with or form the basis of or are otherwise relevant to the transactions
3. to which their duties in respect of audit extend, shall be sent to such place and on such dates as they may appoint for their inspection.
   to put such queries or make such observations as they may consider necessary, to the person in-charge of the office and to call for such information as they may require for the purpose of the audit or the preparation of any account or report which is their duty to prepare.

Governance

Accountability

• The audit functionaries shall be accountable for:
  Effective management of Internal Audit functions in the departments by providing necessary professional, technical and operative guidance in accordance with the International Standards for the Professional Practice of Internal Auditing (Standards) issued by the Institute of Internal Auditors (IIA’s).
• Preparation of Annual Audit Plan.
• Strategic planning, programming and execution of audit activities.
• Providing continuous and timely internal audit support to the department of GoUK.

Organization

The Uttarakhand Audit Act, 2012 under section 3(1) constitutes the Organizational Structure for performing internal audit function in the state. The Directorate of Audit is constituted under Section 3(1) of the Uttarakhand Audit Act, 2012 to perform internal audit functions across the State.
Organizational independence is effectively achieved when the following is forwarded to the Finance Department for review.

• Internal audit charter.
• Risk-based audit plan.
• Receiving communications on internal audit activity’s performance related to plan and other matters.

Independence and objectivity

The internal audit activity shall remain free from interference in an organization, in matters of audit selection, scope, procedures, frequency, timing, or report content to permit maintenance of a necessary independence and objectivity
Internal auditors shall have :

• Unrestricted access to the requisite documents, records, books of accounts, supporting vouchers, computer systems, files etc. as necessary for the performance of the internal audit.
• Cooperation from all the key personnel and staff of the Department in providing the required information and explanations within the reasonable time.

Internal auditors shall have no direct operational responsibility or authority over any of the activities audited. Accordingly, they shall not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair internal auditor’s judgment.

Internal auditors shall exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors shall make a balanced assessment of all the relevant circumstances and not be unduly influenced by their own interests or by others in forming judgments.
Impairment to organizational independence and individual objectivity may include, but is not limited to, personal conflict of interest, scope limitations, restrictions on access to records, personnel, and properties, and resource limitations, such as funding.

Professional Standards

Responsibilities

The scope of internal auditing encompasses, but is not limited to, the examination and evaluation of the adequacy and effectiveness of the organization’s governance, risk management and internal controls. These responsibilities include:

• Evaluating risk exposure relating to achievement of the organization’s strategic objectives.
• Evaluating the reliability and integrity of information and the means used to identify, measure, classify, and report such information.
• Evaluating the systems established to ensure compliance with the applicable policies, plans, procedures, laws, and regulations which could have a significant impact on the organization.
• Evaluating the means of safeguarding assets and, as appropriate, verifying the existence of such assets. Evaluating the effectiveness and efficiency with which resources are employed.
• Evaluating operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.
• Monitoring and evaluating governance processes.
• Monitoring and evaluating the effectiveness of the organization’s risk management processes.
• Reporting periodically on the internal audit charter’s purpose, authority, responsibility, and performance related relative to its plan.
• Reporting significant risk exposures & control issues, including fraud risks, governance issues, and other matters.
• Evaluating specific operations at the request of the management, as appropriate

Internal Audit Plan

• DoA shall submit Annual Internal Audit Plan to ‘Finance Department’ for review.
• The Internal Audit Plan shall consist of a work schedule as well as budget and resource requirements for the next financial year. The DoA shall communicate the impact of resource limitation and interim changes to the Finance Department.
• The internal audit plan shall be developed based on a prioritization of the audit universe using a risk-based methodology, including input of Finance Department. The DoA shall review and adjust the plan, as necessary, in response to changes in the organization’s business, risks, operations, programs, systems, and controls. Any significant deviation from the approved internal audit plan shall be communicated to Finance Department through periodic activity reports.

Reporting and Monitoring

• Audit report shall be prepared by the audit team and should be reviewed by the Supervising Authority, expert committee for quality assessment
• Final Audit Report shall be issued by the Directorate of Audit/ Finance Department based on the recommendation of the expert committee for quality assessment .
• Apart from the audit report to be submitted to each individual audited unit post completion of such audit, the DoA shall, on annual basis, compile and prepare an Annual Integrated Inter Audit Report and forward it to Finance Department for issuance to the concerned secretary of the departments.
• The internal audit report may include auditee’s response and corrective action taken or to be taken regarding the audit findings and recommendations. Auditees shall have strict timeline for complying to audit findings and recommendations.
• The Finance Department and DoA will be responsible for appropriate follow-up & monitoring on audit findings and recommendations.
• The Directorate of Audit shall periodically report to the Finance Department on the internal audit charter’s purpose, authority, and responsibility, as well as performance related to its plan. Reporting shall also include significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by Finance Department.

Quality Assurance and Improvement Programme (QAIP)

• The Internal Audit activity shall maintain a quality assurance and improvement program that covers all aspects of the internal audit activity. The program shall include an evaluation of the internal audit activity’s conformance with the Definition of Internal Auditing and the Standards and an evaluation of whether internal auditors have applied the Code of Ethics. The program also assesses the efficiency and effectiveness of the internal audit activity and identifies opportunities for improvement.
• The Director, Audit shall communicate to Finance Department on the internal audit activity’s quality assurance and improvement program, including results of ongoing internal and external assessments conducted on periodical interval.

Human and Financial resources

1. DoA is provided with adequate number of post
2. the posts are by and large filled always
3. it is given adequate budget for travel and other necessary expenses.