It is the policy of the organization to establish
and support an Internal Audit Office as an Independent appraisal function to examine and
evaluate org. activities as a service to management. The Internal Audit Office reports to
the CEO .
Objective
In alignment with the overall goals of the
organization, the objective of the Internal Audit Office is to add value to overall
organizational performance by providing audit services that result in reduced costs, gains
in operational efficiencies, strengthen internal controls, maintaining ethical and
governance standards.
Authority
•
Internal audit examines and
evaluates the adequacy and effectiveness of the internal control system and risk
management toward accomplishment of strategic goals and objectives set by the management.
•
In accomplishing these
activities, the CEO states its authorization and support, clearly and categorically, that
the Office of Internal Audit will have unrestricted access to all information and record,
provided in Tata Code of Conduct.
Reporting Status
Internal Audit reports to the Audit Committee of
the Board.
Developing and executing a
comprehensive audit program for the evaluation of internal controls and risk management
process .
•
Submit annual audit plans to the
Audit Committee for their review and approval.
•
Review the controls of
safeguarding assets, and as appropriate, verify the existence of such assets.
•
Identify areas of opportunity
where operating performance could be improved, and recommend solutions to control weakness
where appropriate.
•
Determine the adequacy and
effectiveness of systems of internal accounting and operational record , disclosure and
reporting process.
•
Report to concerned functional
head the results of audit examination, the audit opinions rendered, and the
recommendations made to bring systemic change in processes for adding value.
•
Review the effectiveness of
design, implementation and monitoring of risk management process.
•
Submit quarterly report to CEO
on actions taken on significant audit recommendations and value added thereof , actions
not taken on agreed audit recommendations and areas need improvement.
•
Report quarterly to the Audit
Committee on whether appropriate action has been taken on significant audit comments and
recommendations and value added to the process.
•
Co-ordinate audit efforts with
external auditors to avoid duplication of work.
•
Perform other such audit
assignments as may be deemed appropriate by the CEO in support of org. goals and
objectives.
Management Response
•
The Functional head of the
audited operating unit is responsible for taking corrective action within 7 days from
receipt of an internal audit report .
•
The functional head is also
responsible for responding in a written report directly to the Office of Internal Audit.
•
The written report should
identify
1.
What will be done
2.
When it will be accomplished
3.
Who will be responsible for
accomplishing the action
