1. Mandate
The mandate of the Department of Internal Audit is to determine whether the systems of financial and risk management, internal control, and governance processes, as designed and represented by Management, are adequate and functioning in the following manner:
- Risks are appropriately identified and managed.
- Business objectives are achieved in an efficient and effective manner.
- Reliable financial and operating information is provided to Management and staff for decision making and accountability.
- Legislative, regulatory, or contractual requirements are recognized and met; and
- Resources are adequately protected, used economically and effectively applied against stated priorities.
2. Objective
The objective of the Department is to work co-operatively with Management and staff to improve the efficiency and effectiveness of CBL operations. It assists the Central Bank of Liberia in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the Bank's risk management, control, and governance processes.
3. Divisions
The Department consists of two (2) Divisions namely, Operational, Administration and Compliance, and Information Technology, Systems and Special Investigation.
The functions of the Department include the following:
- Preparation the (annual and three-year) audit plan, using a risk-based methodology and submits it to the Audit Committee for review and approval.
- Conduct audits and provides reasonable assurance of audited operation.
- Performance of audit engagements or any ad hoc investigations/activities as may be assigned by the Bank’s Audit Committee or Governor.
- Evaluation of the reliability and integrity of information and the means used to identify measure, classify, and report such information.
- Evaluation of the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on the Bank.
- Evaluation of the means of safeguarding assets and, as appropriate, verifying the existence of such assets.
- Evaluation of the effectiveness and efficiency with which resources are employed.
- Evaluation of the operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.
- Monitoring and evaluation of governance processes.
- Monitoring and evaluation of the effectiveness of the Bank's risk management processes.
- Performance of consulting and advisory services related to governance, risk management and control as appropriate for the Bank.
- Report periodically on the Internal Audit Department’s purpose, authority, responsibility, and performance relative to its plan.
- Reporting of significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by the Board; and
- Evaluation of specific operations at the request of the Board or Management, as appropriate.
- Coordination with other assurance providers, i.e., the Enterprise Risk Management Department and other assurance providers to ensure a comprehensive combined assurance approach to risk assessment and assurance to minimize duplication of effort.
- Following-up on engagement findings and corrective actions, and report periodically to senior management and the Board Audit Committee.