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Corporate Governance - Internal Audit Charter

 

Policy

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.

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Responsibility

The Internal Audit Office is responsible for

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

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