1 INTRODUCTION

1.1 Internal Auditing is an independent and objective assurance and consulting activity that
is guided by a philosophy of adding value to improve the operations of the Thurrock Council. It
assists the council in accomplishing its objectives by bringing a systematic and disciplined
approach to evaluate and improve the effectiveness of the organisation's governance, risk
management, internal control.

1.2 This Charter establishes the purpose, authority and responsibilities for the internal audit
service for The Big Five.

1.3 This Charter has been prepared in order to support the council in ensuring it has in place
an effective Internal Audit service that meets the requirements of the Audit Standards. This was
updated on November 2021.

1.4 For the purposes of this Charter, the Chief Internal Auditor fulfils the role of the council’s
Head of Internal Audit and is referred to as such throughout the document.

2 PURPOSE

2.1 Internal Audit is defined in the Public Sector Internal Audit Standards as:

“An independent, objective assurance and consulting activity designed to add value and
improve an organisation’s operations. It helps an organisation accomplish its objectives by
introducing a systematic, disciplined approach in order to evaluate and improve the
effectiveness of risk management, control, and governance processes.”

2.2 Internal Audit is a key part of the assurance cycle for the council and provides senior
management with assurance on whether the organisation’s risk management, control and
governance processes are adequate and operating effectively.

3 AUTHORITY

The Internal Audit Department is authorized by the Board of Trustees to conduct a

comprehensive internal auditing program. To accomplish its objectives, Internal Audit is
authorized to have unrestricted access to firm functions, records, properties, and personnel.

4 RESPONSIBILITIES

One of the main responsibilities of Internal Audit is to support the Director of Finance &
IT in the discharge of their duties by providing an effective internal audit of the council’s systems
of internal control, risk management and corporate governance in accordance with the Audit
Regulations. Internal Audit do this by providing a high quality, independent service to the council
which evaluates and reports, through the Chief Internal Auditor’s Annual Report, on the
effectiveness of the risk management, internal control and governance processes.
5 STRUCTURE AND STAFFING

The Internal Audit Department consists of three professional auditing staff positions:

 Director
 Manager
 Chief Internal Auditor
 2 Internal Auditors

The Director is responsible for the department’s operation, which includes both audit
selection and budgetary monitoring. The Director also performs audits of the firm’s operations
throughout the fiscal year.

The Manager is responsible for conducting assigned audits, overseeing the work of the
Internal Auditor. The Manager is responsible for the department’s operation in the director’s
absence.

The Chief Internal Auditor is responsible for the overall management and leadership of

the Internal Audit.

The Internal Auditor is responsible for conducting assigned audits and assisting on
maintaining the Administrative Policy and Procedure Manual on the firm’s website

6 AUDIT PLAN

Annually, the Chief Internal Auditor will submit to senior management and the Board an
internal audit plan for review and approval. The internal audit plan will consist of a work
schedule as well as budget and resource requirements for the next fiscal/calendar year. The
Chief Internal Auditor will communicate the impact of resource limitations and significant interim
changes to senior management and the Board. The internal audit plan will be developed based
on a prioritization of the audit universe using a risk-based methodology, including input of senior
management and the Board. Chief Internal Auditor will review and adjust the plan, as
necessary, in response to changes in the organization’s business, risks, operations, programs,
systems, and controls. Any significant deviation from the approved internal audit plan will be
communicated to senior management and the Board through periodic activity reports.

Communication and Approval

The Director will interact and communicate directly to the audit committee to maintain
the necessary independence for the internal audit function. The director communicates
administratively to the president for the day to day activities. Then, the director will provide a
draft audit plan to the president and met to discuss any concerns. Finally, the audit plan will be
presented to the audit committee for approval.
Understanding the Organization and its Business

The auditor should obtain an understanding of the entity and its environment, including its
internal control. It is important in order to identify and assess risk.

6.1 AUDIT SCHEDULE

October
Branch 1 2 3 4 5 6 7 8 9 10
Audit of Cash Fund x x x
Audit of Inventory Count x x x

November
Branch 1 2 3 4 5 6 7 8 9 10
Audit of Cash Fund x x x
Audit of Inventory Count x x x

December
Branch 1 2 3 4 5 6 7 8 9 10
Audit of Cash Fund x x x x
Audit of Inventory Count x x x x
6.2 DEPARTMENT’S BUDGET

Budget Total
Sales Department
Salaries and Wages ₱ xxx
Employee Benefits xxx
Training and Development xxx
Marketing xxx
Transportation xxx
Insurance xxx ₱ xxx
Finance Department
Salaries and Wages xxx
Employee Benefits xxx
Research and Development xxx
Recruitment Expense xxx
Training and Development xxx
Transportation xxx xxx
Human Resource Department
Salaries and Wages xxx
Employee Benefits xxx
Training and Development xxx
Books xxx
Transportation xxx
Consulting Services xxx
Software, equipment, office supplies xxx
Recruitment Expense xxx
Utilities xxx xxx
Total Budget ₱ xxx