Update audit charters or face sanctions - IAA to internal auditors

Internal auditors in public institutions have been given up to December 1, this year, to develop new internal audit charters or risk being sanctioned by the Internal Audit Agency (IAA). 

This is to ensure that the charter — a formal document that includes internal audit functions, mandate, organisational position, reporting relationships, scope of work, types of services and other specifications--- were aligned to Global Internal Audit Standards and the new International Professional Practice Frameworks (IPPFs).

The Director-General (D-G) of the IAA, Dr Eric Oduro Osae, who announced this at a five-day workshop in Accra yesterday, said: “By December 31, every public institution should have their audit charter aligned, if not, we are going to apply the sanctions under the Public Financial Management Act 2016 (Act 921)”.  

The sanctions are publication of names of board members and heads of institutions in the national dailies, withholding the budgets of those institutions and other measures under the PFM Act. 

Adaptation

Dr Osae said that Ghana was among the few nations in the world that adopted the standards.

Since then, he said a national roadmap had been developed to support the operationalisation of the standards, adding that “one of the areas towards operationalising the GIAS was alignment of the internal audit charters of public institutions with the new global standards”. 

To facilitate the alignment process and enhance harmonisation and standardisation of the charters across the public sector, Dr Osae said the IAA had developed a template to guide the public sector in the alignment process.

In line with that, he said the workshop was to support public institutions to align their charters with the requirements of the new standards using the template issued by the agency.

“We strongly believe that the implementation of a revised charter by public institutions will improve the relationship between internal audit units, boards, audit committees and management for improved financial management, corporate governance and public service delivery in the country,” Dr Osae added. 

Election

Following the general election this year, the D-G urged the internal auditors to continue to keep their eye on the control system by elevating their advisory and assurance services roles in a manner devoid of politics.

“Most public institutions have prepared their handing over notes and I expect internal auditors to validate them and make sure that the contents are accurate and also reflect the situation on the ground.

“So that in future if we are to implement outstanding issues in the handing over notes, we will not be found wanting,” he added.