Skip to main content
Normal View

Departmental Functions

Dáil Éireann Debate, Tuesday - 22 September 2015

Tuesday, 22 September 2015

Questions (405)

Eoghan Murphy

Question:

405. Deputy Eoghan Murphy asked the Minister for Public Expenditure and Reform the status of internal audit across his Department; internal audit's relationship with external auditors and audit committees, as well as internal audit's adherence to professional standards. [30514/15]

View answer

Written answers

Status of Internal Audit

The Internal Audit Unit of the Department of Public Expenditure and Reform (DPER) provides an internal audit service to DPER and to the Department of Finance (DFIN) on a shared service basis.  The terms of reference of the internal audit function are set out in:

1. An internal audit charter with DPER

2. A service level agreement with DFIN

The Internal Audit Unit derives its authority from the Accounting Officer, Senior Management and the Audit Committee of each Department.  It works under the general direction of the Accounting Officers in the two Departments and has the right of direct access to him/her on all internal audit matters.  In both Departments, the Internal Audit Unit has unrestricted access to all functional areas, records (both manual and electronic), property, and personnel in the performance of its audits.

The IAU has a primary and secondary reporting line:

- Primary:  To the Accounting Officer who has overall responsibility for the efficient and effective functioning of their specified areas of responsibility;

- Secondary:  To the Audit Committee whose main responsibility is to review progress of the Internal Audit Unit quarterly and consider, at a high level, the adequacy of internal controls and the management of risk.

Relationship with external auditor (C&AG)

The Unit liaises closely with the external auditor of the two Departments (Office of the Comptroller and Auditor General) and any other external auditors who may audit schemes funded by those specified areas of responsibility of the Accounting Officers (e.g. shared services).

All internal audit reports are made available to the Office of the Comptroller and Auditor General for their review.

The external auditor meets the Head of Unit at least once annually and attends at least one audit committee meeting annually.

Relationship with Audit Committees

The role of the Audit Committee in each Department is:

1. To consider the adequacy and effectiveness of the Department's internal control systems, control environment and control procedures.

2. To provide advice and guidance in relation to the systems of risk management and internal control within the Department.

The Unit reports at Audit Committee meetings at least 4 times annually.  The Head of Unit has direct access to the Chair of each Audit Committee on any issue relating to internal audit and risk. 

Adherence to Professional Standards

The Internal Audit Unit is guided by the Standards of the Institute of Internal Auditors which the Minister for Public Expenditure & Reform determined, in November 2012, should apply across all Departments and other Vote Holders.  In line with the Standards (1300 Quality Assurance and Improvement Programme) the Unit undergoes, at least once every five years, an external assessment to evaluate the Unit's conformance with the Standards, its efficiency and effectiveness and identify any opportunities for improvement.  The next assessment is planned for November 2015.

Top
Share