What is Internal Auditing?

The Institute of Internal Auditors defines "Internal Auditing as 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 effectiveness of risk management, control and governance".

Reporting

The Internal Audit Office administratively and functionally reports to  the  Financial  Secretary.  It also  reports  to  Permanent  Secretaries  and  other Heads  of  Departments,  informing  them  of  audit findings  and  recommendations  relating  to  their Ministries and Departments so that corrective action could be taken.

Authority

The Internal Audit Office is authorized by the Government of the Bahamas to conduct a comprehensive program of internal auditing. To accomplish its objectives, internal auditors are authorized to have full, free and unrestricted access to records, property and personnel necessary for the performance of their duties.

Scope

The attainment of Internal Audit's objective involves the following:

• Reviewing and appraising the soundness, adequacy and application of financial, operational, administrative and managerial controls and promoting effective controls at reasonable cost;
• Ascertaining the adequacy of controls in order to   ensure   compliance   with   policies,   plans, procedures and relevant external requirements.
• Ascertaining the extent to which assets are accounted for and are safeguarded from losses of all kinds;
• Ascertaining the reliability of controls established over financial and operational data developed within Ministries and Departments;
• Evaluating the economy and efficiency with which resources are employed and recommending improvements in operations;
• Evaluating any plans or actions taken to correct reported conditions. If corrective actions are considered unsatisfactory, holding further discussions to achieve acceptable results.