Internal Audit

Internal auditing is an independent appraisal activity established within Duke University to examine and evaluate its activities. The objectives of internal auditing are to assist members of the organization in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed and by promoting effective control at reasonable cost.

The Duke University Internal Audit Department is established by the Board of Trustees, and its responsibilities are defined by the Audit Committee of the Board. The Director of the Internal Audit Department will report administratively to the Executive Vice President and functionally to the Audit Committee of the Board of Trustees.

The Director of Internal Audit is authorized to direct a broad comprehensive program of internal auditing within Duke University. Authorization is granted for full and complete access to any of Duke University's records, either manual or electronic, physical properties, and personnel relevant to a review. Documents and information given to Internal Auditors during a periodic review will be handled in the same prudent manner as by those employees normally accountable for them.

The Internal Audit Department has no direct responsibility or any authority over any of the activities or operations that they review. They should not jeopardize their independence by developing and installing procedures, preparing records, or engaging in activities which would normally be reviewed by Internal Audit.

The scope of internal auditing encompasses the examination and evaluation of the adequacy and effectiveness of the organization's system of internal control and the quality of performance in carrying out assigned responsibilities. It includes:

1. Reviewing the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such information.
   
2. Reviewing the systems established to ensure compliance with those policies, plans, procedures, laws and regulations which could have a significant impact on operations and reports and whether the organization is in compliance.
   
3. Reviewing the means of safeguarding assets and, as appropriate, verifying the existence of such assets.
   
4. Reviewing and appraising the economy and efficiency with which resources are employed.
   
5. Reviewing 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.
   
6. Recommending operating improvements.

A written audit report will be prepared and issued by the Director of Internal Audit following the conclusion of each audit and will be distributed as appropriate. The audit report will include a response by the manager of the activity reviewed indicating what actions will be taken in regard to the specific findings and recommendations. Summaries of all audit reports will be forwarded semi-annually to members of the Audit Committee and to the Chairman of the Business and Finance Committee. The Director of Internal Audit may, at his discretion, forward complete audit reports to the Audit Committee and Chairman of the Business and Finance Committee.