INTERNAL AUDIT GOVERNANCE PROCEDURES
The Internal Audit Division of the Bank of Jamaica provides independent, objective assurance and consulting services designed to add value and improve the organisation’s operations. It helps the organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
SCOPE OF WORK
The scope of work of the Internal Audit Division is to determine whether the organisation’s network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning effectively and ensures that quality and continuous improvements are fostered in the organisation’s control process.
In the course of each audit, the audit team discusses its findings, conclusions and suggests improvements with the divisional management concerned. Draft audit reports are subsequently sent to management for confirmation. Final reports, incorporating management’s response and agreed actions, are issued to the management of the audited entity.
The Executive Management, the Audit and Risk Committee of the Board and Heads of Division are informed of any instances where agreed actions or other appropriate improvements have not been implemented or where corrective action taken by management is considered inappropriate or insufficient.
To provide for independence for the Internal Audit Department, the Chief Audit Executive and personnel, in the discharge of their duties, report administratively to the Chairman of the Board/Governor and functionally to the Audit and Risk Committee of the Board which is chaired by a non-executive member of the Board.
THE CHIEF AUDIT EXECUTIVE
- Provides the Audit and Risk Committee with bi-monthly reports summarising the results of audit activities and identifying significant audit findings and recommendations.
- Provide the Audit and Risk Committee with triannual reports summarising the status of outstanding recommendations.
- Meets with the Audit and Risk Committee at least four (4) times annually to discuss these reports together with the departments work plan activities.
- Meets with the Audit and Risk Committee outside of scheduled meetings if the need arises.
- Reports are made to the Board by the Chairman of the Audit and Risk Committee on matters discussed and positions reached at the meetings.
STANDARDS OF AUDIT PRACTICE
The Internal Audit Division is guided by the International Standards for the Professional Practice of Internal Auditing, the Code of Ethics as stipulated by The Institute of Internal Auditors as well as other professional auditing standards as applicable.