Organizational placement of the Internal Audit function has been established to assure both a broad range of coverage and adequate consideration of audit recommendations. Objective assignments within Internal Audit recognize that internal auditors should not develop and install procedures, prepare records or engage in any other activity which they would normally review and appraise or which might otherwise compromise independence and objectivity. In establishing the Internal Audit plan previous audit coverage, significance of exceptions and the need for regular contact are primary considerations. The audit plan is based on an assessment of the various business risks of the corporation whether the risk is viewed as financial, operations, regulatory, or reputational. The plan is also carefully coordinated with the external auditors' requirements to provide the best possible coverage at minimum cost.
Flexibility is maintained to accommodate unusual problems and to meet special unscheduled requests.
Adequate review and forethought are given to each audit assignment or undertaking. The annual audit plan is reviewed with the appropriate executive management and submitted to the Audit and Compensation Committee for approval. Pre-audit personal contact with responsible managers for concerns and information. Obtaining an understanding of the business, and the associated risks. Coordination with the external auditors when appropriate.