PI-26. Internal audit
Description
This indicator assesses the standards and procedures applied in internal audit. It contains four dimensions and uses the M1 (WL) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for score |
|---|---|
26.1. Coverage of internal audit |
|
| A | Internal audit is operational for all central government entities. |
| B | Internal audit is operational for central government entities representing most of total budgeted expenditures and for central government entities collecting most of budgeted government revenue. |
| C | Internal audit is operational for central government entities representing the majority of budgeted expenditures and for central government entities collecting the majority of budgeted government revenue. |
| D | Performance is less than required for a C score. |
26.2. Nature of audits and standards applied |
|
| A | Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal controls. A quality assurance process is in place within the internal audit function and audit activities meet professional standards, including focus on high risk areas. |
| B | Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal controls. |
| C | Internal audit activities are primarily focused on financial compliance. |
| D | Performance is less than required for a C score. |
26.3. Implementation of internal audits and reporting |
|
| A | Annual audit programs exist. All programmed audits are completed, as evidenced by the distribution of their reports to the appropriate parties. |
| B | Annual audit programs exist. Most programmed audits are completed, as evidenced by the distribution of their reports to the appropriate parties. |
| C | Annual audit programs exist. The majority of programmed audits are completed, as evidenced by the distribution of their reports to the appropriate parties. |
| D | Performance is less than required for a C score. |
26.4. Response to internal audits |
|
| A | Management provides a full response to audit recommendations for all entities audited within twelve months of the report being produced. |
| B | Management provides a partial response to audit recommendations for most entities audited within twelve months of the report being produced. |
| C | Management provides a partial response to audit recommendations for the majority of entities audited. |
| D | Performance is less than required for a C score. |
Coverage
CG.
Time period
Dimensions 26.1 and 26.2: At time of assessment.
Dimension 26.3: Last completed fiscal year.
Dimension 26.4: Audit reports used for the assessment should have been issued in the last three fiscal years.
