Audit Services Charter

Internal Audit 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, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes

The purpose of the internal audit function is to strengthen Texas Woman’s University’s (TWU) ability to create, protect, and sustain value by providing the board and management with independent, risk-based, and objective assurance, advice, insight, and foresight.

The internal audit function enhances TWU’s:

• Successful achievement of its objectives.
• Governance, risk management, and control processes.
• Decision-making and oversight.
• Reputation and credibility with its stakeholders.
• Ability to serve the public interest.

TWU’s internal audit function is most effective when:

• Internal auditing is performed by competent professionals in conformance with The IIA’s Global Internal Audit StandardsTM, which are set in the public interest.
• The internal audit function is independently positioned with direct accountability to the board.
• Internal auditors are free from undue influence and committed to making objective assessments.

The TWU internal audit function will adhere to the mandatory elements of The Institute of Internal Auditors' International Professional Practices Framework, which are the Global Internal Audit Standards and Topical Requirements. The Chief Audit Executive will report quarterly to the board and senior management regarding the internal audit function’s conformance with the Standards, which will be assessed through a quality assurance and improvement program.

The internal audit activity is established per the Texas Internal Auditing Act. The Office of Audit Services is the internal audit activity. The TWU Board of Regents, through the Finance and Audit Committee, provides oversight. The Office of Audit Services works to be a trusted advisor to management in the areas of governance, risk management and internal controls.

The Chief Audit Executive will ensure that internal auditors:

• Conform with the Global Internal Audit Standards, including the principles of Ethics and Professionalism: integrity, objectivity, competency, due professional care, and confidentiality.
• Understand, respect, meet, and contribute to the legitimate and ethical expectations of the organization and be able to recognize conduct that is contrary to those expectations.
• Encourage and promote an ethics-based culture in the organization. 
• Report organizational behavior that is inconsistent with the organization’s ethical expectations, as described in applicable policies and procedures.

The internal audit activity, with strict accountability for confidentiality and safeguarding records and information, is authorized full, free and unrestricted access to any and all of TWU’s records, physical properties, and personnel pertinent to carrying out any engagement. All employees are requested to assist the internal audit activity in fulfilling its roles and responsibilities. The internal audit activity will also have full, free and unrestricted access to the Chancellor and President, and the Board of Regents through the Finance and Audit Committee.

The Office of Audit Services is an integral part of TWU and functions in accordance with the policies established by the Chancellor and President, and the Board of Regents. To provide for the independence of the internal auditing activity, the Chief Audit Executive reports directly to the Board of Regents, functionally through the Finance and Audit Committee. The Chief Audit Executive reports administratively to the Chancellor and President.

The Chief Audit Executive will communicate and interact directly with the Board of Regents, including in Finance and Audit Committee meetings, executive sessions where allowed by law, and between committee meetings, as appropriate. Responsibilities of the Board of Regents and Finance and Audit Committee are outlined in the Board of Regents Bylaws.

The Chief Audit Executive will ensure that the internal audit function remains free from all conditions that threaten the ability of internal auditors to carry out their responsibilities in an unbiased manner, including matters of engagement selection, scope, procedures, frequency, timing, and communication. If the Chief Audit Executive determines that objectivity may be impaired in fact or appearance, the details of the impairment will be disclosed to appropriate parties. 

Internal auditors will maintain an unbiased mental attitude that allows them to perform engagements objectively such that they believe in their work product, do not compromise quality, and do not subordinate their judgment on audit matters to others, either in fact or appearance.

Internal auditors will have no direct operational responsibility or authority over any of the activities they review. Accordingly, internal auditors will not implement internal controls, develop procedures, install systems, or engage in other activities that may impair their judgment, including:

• Assessing specific operations for which they had responsibility within the previous year. 
• Performing operational duties.
• Initiating or approving transactions external to the internal audit function.

Internal auditors will:

• Disclose impairments of independence or objectivity, in fact or appearance, to appropriate parties and at least annually, such as the Chief Audit Executive, board, management, or others.
• Exhibit professional objectivity in gathering, evaluating, and communicating information. 
• Make balanced assessments of all available and relevant facts and circumstances.
• Take necessary precautions to avoid conflicts of interest, bias, and undue influence.

The Chief Audit Executive will confirm to the Board of Regents, at least annually, the organizational independence of the internal audit activity and its staff members.

The scope of internal auditing encompasses, but is not limited to, the examination and evaluation of the adequacy and effectiveness of the organization’s governance, risk management, and internal controls as well as the quality of performance in carrying out assigned responsibilities to achieve the organization’s stated goals and objectives. To accomplish this the Chief Audit Executive will:

• Develop a risk-based internal audit plan that considers the input of the board and senior management, and submit that plan to the TWU Board of Regents for review and approval.
• Execute the annual audit plan as approved.
• Communicate the impact of resource limitations on the internal audit plan to the board and senior management.
• Ensure internal audit engagements are performed, documented, and communicated in accordance with the Global Internal Audit Standards. 
• Ensure the internal audit function collectively possesses or obtains the knowledge, skills, and other competencies and qualifications needed to meet the requirements of the Global Internal Audit Standards and fulfill the internal audit mandate.
• Consider emerging trends and successful practices in internal auditing.
• Establish and ensure adherence to methodologies designed to guide the internal audit function.
• Ensure adherence to TWU relevant policies and procedures unless such policies and procedures conflict with the internal audit charter or the Global Internal Audit Standards. Any such conflicts will be resolved or documented and communicated to the board and senior management.
• Coordinate activities and consider relying upon the work of other internal and external providers of assurance and advisory services. If the Chief Audit Executive cannot achieve an appropriate level of coordination, the issue must be communicated to senior management and if necessary escalated to the board.
• Perform consulting and advisory services related to governance, risk management and control as appropriate for the organization. Such services include management requests, participation on institutional committees, and participation on implementation teams for information technology projects and business process improvements.
• Evaluate specific operations at the request of the Finance and Audit Committee or management, as appropriate.
• Conduct interviews or investigations of suspected fraudulent activities in accordance    with university policies and procedures.

At least annually, the Chief Audit Executive will submit to the Board of Regents through the Finance and Audit Committee an internal audit plan for review and approval. The internal Audit plan will consist of a work schedule, budget and resources plan for the next fiscal year. The internal audit plan will be developed based on a prioritization of the audit universe using an appropriate risk-based methodology, including input of senior management and the Finance and Audit Committee Chair. The Chief Audit Executive will review and adjust the plan, as necessary, in response to changes in the internal audit resource levels or the University’s business, risks, operations, program, systems, and controls. Any significant deviation from the internal audit plan will be communicated to the Board of Regents through the Finance and Audit Committee.

The Chief Audit Executive or designee will communicate the results of each internal audit engagement to the appropriate individuals and state and federal oversight agencies as required. Internal audit results will also be communicated to the Board of Regents.

Communication of the engagement results may vary in form and content depending upon the nature of the engagement and the needs of the client. A formal internal audit report will include management’s response and corrective action taken or to be taken in regard to the specific findings and recommendations. Management’s response should include an implementation date for anticipated completion of action.

The Office of Audit Services will be responsible for appropriate follow-up on management action plans to address engagement findings and recommendations and reporting the results to appropriate management members and the Board of Regents. All significant findings will remain as open issues until reviewed and cleared by the Office of Audit Services.

The Office of Audit Services will fulfill reporting requirements for audit reports and the annual report, including the annual audit plan, as prescribed by the Texas Internal Auditing Act.

The Chief Audit Executive will periodically report to the Board of Regents through the Finance and Audit Committee on the Office of Audit Services’ purpose, authority, and responsibility, as well as performance relative to its audit plan. Reporting will also include significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by the Chancellor and President and the Board of Regents.

The internal audit activity will maintain a quality assurance and improvement program that covers all aspects of the internal audit activity. The program will include an evaluation of internal audit activity’s conformance with Global Internal Audit Standards and topical requirements. The program will also assess compliance with the Texas Internal Auditing Act and Generally Accepted Government Auditing Standards, and the efficiency and effectiveness of the internal audit activity, as well as opportunities for improvement.

The Chief Audit Executive will communicate to the Board of Regents on the internal audit activity’s quality assurance and improvement program at least annually, including results of ongoing internal assessments and external assessments conducted at least every three years.

• Texas Internal Auditing Act, Government Code Chapter 2102
• The Institute of Internal Auditors, International Standards for the Professional Practices Framework (IPPF or IIA Standards)
• The Institute of Internal Auditors, Global Internal Audit Standards and Topical Requirements
• U.S. Government Accountability Office, Government Auditing Standards (GAGAS or The Yellow Book)
• TWU Board of Regents, Regent Policy: A.10000 Bylaws
• TWU Board of Regents, Regent Policy: B.20400 Internal Audit

The Office of Audit Services Audit Charter was approved by the Finance and Audit Committee and the Board of Regents on November 13, 2025.