Functions and Responsibilities

Internal Audit performs an independent appraisal function throughout the Isle of Man Government by examining, evaluating and reporting on the adequacy of internal controls and providing assurance to Chief Executive Officers of their organisation's systems of control.

Internal Audit operates as a service to management in all Departments, offices and Statutory Boards and whilst being one of the eight Divisions of the Treasury is wholly independent. Although ultimate responsibility for the actions of the Division rests with the Chief Financial Officer. Terms of Reference established for the Division and authorised by the Chief Financial Officer, clearly state that the Chief Internal Auditor may determine all areas of internal audit activity.

The Chief Internal Auditor, a qualified accountant, is Head of the Division and a member of the Treasury Senior Officers Management Team. Based on a strategic risk analysis an annual plan is prepared from which a number of reviews are carried out. The challenge of setting strategic and operational audit plans to effectively address the risks across the organisation is finely balanced. The risk assessment techniques are closely merged with cyclical reviews, project developments and new policy initiatives in order to continuously update and refine the areas of activity which become the subject of internal audit. Internal Audit examines and evaluates the effectiveness of the control environment throughout Government in accordance with the annual audit plan.

Each review is undertaken by ascertaining, documenting and evaluating the systems in operation; by interviewing, observing, testing of transactions and examining records at the organisation. The Chief Internal Auditor and the officers of the Division have full and complete access at all times and across Government as a whole to all records, documents, files and correspondence appertaining to the review being undertaken.

At the end of each review a draft report is prepared and following consultations with the organisation a final report issued. A follow up audit is carried out several months later to confirm that the recommendations made have been implemented.

The Internal Audit Division performs all its audit activity in accordance with the recognised internal auditing standards and guidelines produced by the Institute of Internal Auditors (the primary body in the UK representing, promoting and developing the practice of internal auditing) supplemented where appropriate by the code of conduct and professional ethics of the Chartered Institute of Public Finance and Accountancy in respect of members belonging to that body.

This code calls for high standards of integrity, objectivity, confidentiality and loyalty. All internal audit work is performed with proficiency and due professional care.

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