Dáil Éireann debate -
Wednesday, 16 Oct 1991

Vol. 411 No. 1

Written Answers. - Semi-State Companies' Audit Systems.

Ruairí Quinn

Question:

175 Mr. Quinn asked the Minister for Finance if, in respect of each semi-State company responsible to his Department he will outline (a) the type of internal audit system which has been established (b) when it commenced to function, (c) the way in which it functions and (d) to whom it reports; whether he has satisfied himself that the system combines the necessary elements of scrutiny and managerial autonomy; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

The following is the information requested in respect of the semi-State companies under my aegis:

1. Industrial Credit Corporation.

(a) The scope of the internal audit function in ICC encompasses the examination and evaluation of the adequacy and effectiveness of the organisation's system of internal control.

(b) November 1981.

(c) The internal audit function reviews all the systems, procedures and practices of the company with a view to ensuring the reliability and integrity of procedures and information, compliance with policies, plans, procedures, laws and regulations and the safeguarding of assets.

(d) The internal audit division reports to the managing director and the audit committee of the board.

The Minister is satisfied that the system combines the necessary elements of scrutiny and managerial autonomy.

2. Agricultural Credit Corporation

(a) ACC Bank has an independent internal audit department. The job of the department is to monitor compliance with policy, procedures and regulations both internal and external.

(b) 15 years ago.

(c) The audit department establishes its own audit programme each year subject to approval by the audit committee. The plan outlines the areas with which it is proposed to deal during the audit period. Flexibility is built into the plan in order to accommodatead hoc audits which require to be carried out. A report is prepared at the end of each audit incorporating the auditor's recommendations.

The internal audit department also cooperates fully with the external auditors and ensures that their recommendations are implemented.

(d) The internal audit department reports to a deputy chief executive but has direct access to the chairman of the audit committee.

The Minister is satisfied that the system combines the necessary elements of scrutiny and managerial autonomy.