Or. Admin. Code § 125-700-0150 - Internal Audit Independence

(1) In order to maximize both independence and objectivity of the audit function and allow the internal audit function to fulfill its responsibilities, the agency Chief Audit Executive must report functionally to the agency audit committee, and administratively t the agency Director, Deputy Director, or equivalent.

(2) The Chief Audit Executive must have unrestricted access to decision-makers and decision-making bodies and to the information and employees needed to perform internal audit duties and responsibilities. The Chief Audit Executive may not defer ultimate judgement on audit matters to others and must be free to obtain advice and information from sources inside and outside the agency. To be effective in their role, the Chief Audit Executive should be a non-voting member of the agency's senior management team and attend Executive/Leadership team meetings.

(3) The internal audit function must be free from interference in determining the scope of internal auditing, performing work and communicating results. The Chief Audit Executive must disclose such interference to the audit committee and discuss the implications.

(4) The internal audit function must be free of any operational and management responsibilities that would impair its ability to make independent reviews of all aspects of the agency's operations.

(5) Where the Chief audit executive has or is expected to have roles and/or responsibilities that fall outside of internal auditing, safeguards must be in place to limit impairments to independence or objectivity.

(6) A scope limitation, including resource limitations, placed upon an internal audit function that precludes it from meeting objectives must be communicated in writing to the audit committee and, if applicable, agency management, along with its potential effect.

Notes

Or. Admin. Code § 125-700-0150

DAS 1-2011, f. 6-23-11, cert. ef. 6-30-11; DAS 2-2014, f. 4-30-14, cert. ef. 5-1-14; DAS 3-2022, amend filed 04/27/2022, effective 5/1/2022

Statutory/Other Authority: ORS 184.360

Statutes/Other Implemented: ORS 184.360(3)