Scope and Objectives
Internal auditing is an independent, objective, assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal Audit is an independent function established by the management of the organization for the review of internal control system as a service to the organization. The scope of internal audit is unrestricted access to all records and assets deemed necessary in the course of audit. The core objectives of Internal Auditor are;
- Objectively review the organization's business processes
- Evaluate the efficacy of risk management procedures that are currently in place
- Protect against fraud and theft of the organization's assets
- Ensure that the organization is complying with relevant laws and statutes
- Make recommendations on how to improve internal controls and governance processes
Reporting Lines
The position reports to Executive Director for all administrative, managerial and planning matters. However, the audit reports shall be directly submitted to AFC. The same shall be copied to the Chairperson of Sungi BoG as per the communication protocols. Any special assignments assigned by the AFC or Chairperson BoG shall be planned, executed and submitted to the Chairperson directly with a copy to ED.
Independence of the Role
The position neither has executive authority nor responsibility for the development, implementation and operationalization of the systems. However, his/her advice may be sought by ED or Chairperson on risk management, control, governance or any other related matters. Independence of IA is achieved by
- Ensuring direct reporting lines to the AFC and Chairperson BoG
- Ability to share reports to all senior management for taking corrective measures
- S/he should not develop or install procedures, prepare records, or engage in activities that would normally be reviewed by him/her; and
- The appointment, remuneration and termination of the IA should be subject to formal approval of Finance & Audit Committee and or Chairperson BoG. IA will not have a direct responsibility for any or the activities reviewed.
Major Responsibilities
Work performed by the IA can be divided into three categories:
- Pre & Post Audit
- Pre & Post Audit: It is the responsibility of the IA to test, evaluate and analyze the system of internal control employed by management, to Safeguard Sungi’s assets and to ensure the accuracy of financial records. Moreover, IA shall also review processes for compliance with all the Sungi’s policies and procedures, and make recommendations to improve operational efficiency, where needed.
- IA shall perform the pre-audit of all cases involving the procurement of Supplies and Services exceeding PKR 100,000 to ensure compliance with Sungi’s Policies and Procedures.
- IA shall conduct periodic Audit of all field offices during the year to review the accounting and administrative records and transactions. In this regard IA shall prepare a quarterly plan and share with Executive Director and AFC two weeks prior to the start of every quarter.
- IA shall provide, in cooperation with the Head of Finance Department and the AFC; the general audit plan for review and approval. Audit activities shall include, and not limited to, the following:
- Determine the accuracy and validity of financial statements and transactions as per the requirements of International Auditing Standards
- Evaluate the financial and operational procedures for adequacy and effectiveness of internal controls & make recommendations for improvement.
- Verify the existence of Sungi’s assets and ensure that assets are adequately safeguarded against loss.
- Review and assess whether the Sungi’s policies & procedures are being respected and complied with.
- Assess compliance & consistency with the applicable Government laws and regulations.
- Evaluate the Sungi's electronic information and data processing system and review major modifications to ensure inclusion of necessary controls.
- Review specific processing systems such as receipt of grants, payroll, procurement, etc.
- Assess the Sungi's compliance with conditions and restrictions on use of funds.
- 2. Risk Management
The IA shall implement the risk management process in the following manner.
- Risk Assessment. Carryout risk assessment at the beginning of the year and share finding with the Management
- Make recommendation to management to manage & mitigate the risk
- 3. Special Requests
The IA must allocate a certain amount of time as needed to conduct Audit, specially based on requests made by the Executive Director /Chairperson/Audit & Finance Committee, provided such request do not compromise its objectivity or independence, or completion of the approved audit. These requests may vary in nature and can be related to policies and procedures, processes and controls, fraud, loss of assets, violation of contractual obligation, etc.
- 4. Special Investigations
The IA shall assist audit committee in evaluating loss impact and the control weaknesses. The committee shall recommend corrective measures to BoG/management for preventing subsequent recurrences. The IA shall act as a member of Investigation committee, if requested by ED, to investigate any matters involving Financial or Administrative irregularities.
Standards and Ethics
IA work will be performed with due professional care, in accordance with applicable professional auditing standards. IA will adhere to the International Auditing Standards and the Code of Ethics adopted by the Institute of Chartered Accounts of Pakistan (ICAP)
Professional Development
The IA will be responsible for continuing educational development to enhance his/her professional and personal growth. S/He will ensure that all Internal Audit staff has received the appropriate training to perform their jobs efficiently.
Relevant Experience:
Job Description: