This Charter was prepared in accordance with Article 9 of the Audit Committee Formation Resolution issued by the University Council of Al-Jouf University on 19/03/1443H, which stipulates in Paragraph 6 that the Committee is to review and approve the Internal Audit Charter submitted by the Director of the Internal Audit Department.

This Charter is also aligned with the Unified Internal Audit Regulation approved by the Council of Ministers Resolution No. (235), dated 20/08/1425H, the Government Audit Standards issued by the General Court of Audit under No. 245 dated 11/01/1429H, the Internal Audit Units Guideline for Government Entities and Public Institutions issued by the General Court of Audit on 27/10/1431H, as well as the standards issued by the Ministry of Finance, and the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors (IIA).

Standard No. (1000) of the IIA requires that the purpose, authority, and responsibility of the internal audit activity be formally defined in a charter that is approved by senior management and is consistent with the Standards. In compliance with that requirement, the Internal Audit Department has developed this Charter.

Objective:

The Internal Audit Department aims to provide independent and objective assurance and consulting services to assist the University President and executive departments in effectively and efficiently carrying out their responsibilities. The Charter defines the powers of the Internal Audit Department and enables it to have full and unrestricted access to all records and documents, with the necessary authority delegated to it to fulfill its objectives.

The role of the Internal Audit Department is limited to providing assurance and consultation; it does not provide guarantees — the responsibility remains entirely with the audited departments.

Independence:

The Internal Audit Department reports directly to the University President, which ensures its independence from the various university sectors and departments through an organizational structure that preserves its authority and scope of work.

Authority:

• Direct communication with the University President.
• Full access to all records, books, activities, programs, and documents (manual or electronic) without restriction.
• The authority to define the scope of audits and determine the professional techniques used.

Duties:

• Internal auditors must not design, develop, or implement internal control systems that could impair their independence and objectivity.
• They may, however, provide opinions and advice before or after the implementation of control systems and suggest additional controls where risks exist, without affecting independence.
• They must not participate in any activities or functions that may be subject to future audits.
• All information obtained during audits is strictly confidential and must only be used for work purposes.
• The Internal Audit Department is not responsible for the operations of the audited departments; the responsibility for compliance lies with those departments.

Responsibilities:

• Prepare a risk-based annual audit plan aligned with the department’s capacity and submit it to the University President for approval.
• Execute audits according to the approved plan.
• Submit comprehensive periodic reports to the University President.
• In exceptional cases, issue special reports as needed.
• Coordinate between university departments and external oversight bodies (e.g., General Court of Audit, Anti-Corruption Authority).
• Develop internal auditing policies and procedures (Internal Audit Manual) consistent with best professional practices.
• Build strong relationships with departments through:
  • Continuous improvement of audit methodologies.
  • Professional development of internal audit staff through training and workshops.
  • Increasing awareness of the importance of internal auditing among departments.
  • Clarifying that internal audit aims to support departments in avoiding observations from oversight bodies.

Scope of Work:

The Internal Audit Department adopts a systematic and disciplined approach to evaluate and enhance the effectiveness of internal controls and risk management at the University.

Audits are conducted based on regular inspections and evaluation of:

• The adequacy of internal control systems.
• The quality of performance.
• Compliance with policies, procedures, and applicable regulations.
• Alignment with the University’s objectives and Ministry of Finance-approved accounting standards.

Risk evaluation helps reduce recurring issues. Departments are classified based on a five-level risk scale, where 1 = Very Low Risk and 5 = Very High Risk.

Scope includes:

1. Before the Audit:

• Providing consulting services to support planning, design, and implementation of improvements.
• Ensuring adequate controls exist in information systems and that they ensure compliance with regulations.
• Preparing a risk-based audit plan for units to be audited.

2. During and After the Audit:

• Conducting audits with a focus on high-risk departments and exceptional reviews as requested by the University President.
• Reviewing plans and measures taken to safeguard university assets from theft, damage, misuse, or corruption.
• Communicating results to relevant department staff through periodic reports.

Reporting:

• After each audit, a written report must be prepared detailing audit objectives, scope, and findings, and shared with the audited department and the University President, including directives to avoid future issues.
• Audited departments must submit a written response explaining corrective actions taken or planned, along with estimated completion timelines.
• Internal auditors submit monthly reports to the Audit Department Director summarizing:
  • Audit plan adequacy and any limitations encountered.
  • Actions taken to address previous recommendations.
  • Practical steps taken to enhance operational efficiency and coordinate with external oversight entities.

The Director of Internal Audit then reviews the reports and submits the final results and recommendations monthly to the University President.

Charter Validity:

This Charter is subject to review and update as needed, upon approval by the University President.