QUEENSLAND
POLICE
SERVICE
Ethical Standards Command
CHARTER
OF THE INTERNAL AUDIT FUNCTION
July 2013
Table of Contents
1
INTRODUCTION ..................................................................................................1
2
ROLE ...................................................................................................................1
3
AUTHORITY ........................................................................................................2
4
INDEPENDENCE .................................................................................................2
5
PRACTICE STANDARDS ...................................................................................3
6
PLANNING ..........................................................................................................4
7
REPORTING ........................................................................................................4
8
INTERNAL AUDIT ...............................................................................................6
9 COOPERATION WITH THE QUEENSLAND AUDIT OFFICE AND CRIME AND
MISCONDUCT COMMISSION....................................................................................6
10
LIASION WITH RISK MANAGEMENT AND BUSINESS CONTINUITY..........7
11
PROFESSIONAL STANDARDS AND QUALIFICATIONS ..............................7
12
CONFIDENTIALITY .........................................................................................7
13
REVIEW OF THE CHARTER ...........................................................................8
1
INTRODUCTION
1.1
This Charter sets out the authority and responsibility conferred on the internal audit
function by the Commissioner of Police, Queensland Police Service (QPS) under
Section 30 (2) (b) of the Financial and Performance Management Standard 2009
(FPMS).
1.2
This Charter represents the existing arrangement whereby Internal Audit and the
Inspections Teams within the Integrity and Performance Group provide the internal
audit function for the QPS. The Head of Internal Audit is responsible for managing all
aspects of outsourcing internal audit services and supervising outsourced providers.
1.3
Internal Audit and the Inspections Teams are separate, but collaborate in annual
planning and performing reviews where their combined expertise is appropriate.
1.4
This Charter has been prepared in accordance with the requirements of the Police
Service Administration Act 1990 (PSAA), the Financial Accountability Act 2009
(FAA), the Financial and Performance Management Standard 2009 (FPMS) and the
Financial Accountability Regulation 2009 (FAA Reg. 2009).
2
ROLE
2.1
The internal audit function assists the Commissioner and QPS managers in the
effective discharge of their responsibilities in accordance with the relevant legislation,
policy and procedures.
2.2
This role is performed by independently appraising operational, financial, personnel
and information technology systems for compliance with QPS standards, economy,
productivity, efficiency, effectiveness, appropriateness, capability, quality and best
practice.
2.3
The internal audit function reviews and evaluates:
• the adequacy and effectiveness of the system of internal control and the quality of
performance in carrying out assigned responsibilities;
• the reliability and integrity of financial and operating information and the means
used to identify, measure, classify and report such information;
• whether the QPS is in compliance with the relevant legislation, policy and
procedures;
• the means of safeguarding assets and, when appropriate, verifies the existence of
such assets;
• the economy and efficiency with which resources are managed and used;
• operations and programs to ascertain whether results are consistent with established
objectives and goals and whether operations and programs are carried out as
planned; and
• the impact of emerging issues on QPS directions.
2.4
In addition to the above, the internal audit function also:
•
•
evaluates QPS-initiated programs or reviews program evaluations;
coordinates and conducts evaluations of major initiatives and emerging issues;
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•
•
•
•
•
•

advises project officers and research officers in regions, commands and divisions
on the execution of their projects;
coordinates projects, conducted internally or externally, in order to avoid
duplication of effort;
reviews risk assessments, and fraud and corruption prevention initiatives;
advises on best practice and publishes "better practice" reports;
conducts audit awareness and training for managers and stakeholders;
provides internal control advice to system designers; and
provides appropriate follow-up of internal audit findings and recommendations.
2.5
From time to time, the internal audit function undertakes special projects directed by
the Commissioner, the Board of Management, or when urgent issues are identified, or
following requests from other establishments for inquiries that have Service-wide
implications, and that are approved by the Assistant Commissioner, Ethical Standards
Command.
2.6
These projects are managed so that they do not adversely impact on the core functions
of the internal audit function.
2.7
This role does not relieve QPS managers of their responsibility for the discharge of
their duties. Managers must still ensure the maintenance of adequate accounting
records and internal controls, including the selection and application of appropriate
accounting policies, the safeguarding of assets and the conduct of system upgrades.
3
AUTHORITY
3.1
The internal audit function has unrestricted access to activities, records, personnel and
assets of the QPS, where such access is a reasonable requirement for fulfilling the
internal audit function. Where internal audit services are provided through
outsourcing, the outsourced providers are deemed an element of Internal Audit.
3.2
The internal audit function fulfils its functions in accordance with approved work
programs or as directed by the Commissioner or the Assistant Commissioner, Ethical
Standards Command and by determining the purpose and scope of individual projects
in cooperation with the manager responsible for the subject entity. The Commissioner
or the Assistant Commissioner, Ethical Standards Command may also rely on the
advice of the Audit and Risk Management Committee to vary the work programs of
the internal audit function.
4
INDEPENDENCE
4.1
The internal audit function operates independently of the entities it audits. The
internal audit function is not responsible for developing or implementing new systems
or changes to existing ones. However, its role does include advising system designers
on internal control design.
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5
PRACTICE STANDARDS
5.1
The internal audit function is performed in accordance with:
• the Financial Accountability Act 2009;
• the Police Service Administration Act 1990;
• the Financial and Performance Management Standard 2009;

the Financial Accountability Handbook, issued by Queensland Treasury and
Trade;
• the Institute of Internal Auditors’ International Professional Practices Framework as
well as standards and pronouncements issued by the Australian Accounting
Standards Board, the Auditing and Assurance Standards Board and the Accounting
Professional & Ethical Standards Board;
• QPS policy, e.g. Operational Procedures Manual, Human Resource Management
Manual and Administration Manual, Major Incident Guidelines; and
• the policies, procedures, forms and instructions of the Integrity and Performance
Group.
5.2
Members of the internal audit function need to possess the following knowledge, skills
and disciplines:
•

•
•
5.3
audit and consultancy skills;
communication and interpersonal skills;
analytical skills; and
awareness of project management practices.
In addition, it is advisable for Internal Audit officers to have:
•
•
•
•

tertiary qualifications in finance and/or IT;
knowledge of accounting and auditing standards;
skills in IT-related matters;
knowledge of financial practices and procedures; and
membership of relevant professional associations.
5.4
It is advisable for members of the Inspections Teams to possess extensive operational
policing experience and a strong understanding of governance principles underlying
policing.
5.5
Quality of work is achieved through the following processes:
•
•
•
•
•
•
•
preparing working papers, which support investigations made, and conclusions
reached;
applying quality management and rigorous review of work practices and results;
exercising due professional care and maintaining confidentiality of information
gathered, where appropriate;
valuing good people skills and effective communications;
stringent peer review processes;
bench marking performance with similar external groups; and
encouraging membership of appropriate professional associations and maintaining
commitment to good working practices and continuing professional development.
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6
PLANNING
6.1
Internal Audit develops and maintains a Strategic Plan. Additionally Internal Audit
and the Inspections Teams develop and maintain annual programs of review in the
form of published plans.
6.2
The plans are designed to meet the needs of the Commissioner and QPS managers.
The plans are risk and issue-based with a focus on performance, management
compliance with the relevant legislation, policy and procedures, reporting better
practice and identifying improvement opportunities.
6.3
Plans are formulated for each financial year by the internal audit function, submitted
to the QPS Audit and Risk Management Committee for endorsement and
recommendation to the Commissioner for approval.
7
REPORTING
7.1
Internal Audit has a direct reporting line to the Commissioner. In the normal course of
events Internal Audit reports to the Commissioner through the Assistant
Commissioner, Ethical Standards Command and the Audit and Risk Management
Committee. Should Internal Audit need to report directly to the Commissioner,
Internal Audit will in the first instance, discuss the issue with the Assistant
Commissioner, Ethical Standards Command.
7.2
The Inspections Teams report to the Commissioner through the Assistant
Commissioner, Ethical Standards Command.
7.3
The internal audit function reports to the QPS Audit and Risk Management
Committee, through the Assistant Commissioner, Ethical Standards Command every
three months or more frequently if required.
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Reporting and Accountability Channels
Commissioner
Asst Commissioner,
Ethical Standards
Command
Inspections Teams
7.4
QPS Audit and
Risk
Management
Committee
Internal
Audit
The report to the Audit and Risk Management Committee includes:
• a review of the Inspections Teams and Internal Audit plans, on a yearly basis;
• a summary of findings, exceptions and recommendations from reports completed
since the previous QPS Audit and Risk Management Committee meeting;
• reported progress on implementing recommendations, as advised by the office of
the Deputy Commissioner (Specialist Operations), Deputy Commissioner
(Regional Operations), Deputy Commissioner (Strategy, Policy and Performance)
or the Deputy Chief Executive (Corporate Support);
• a list of frequent system failures which reflect a need for special or urgent response;
and
• the internal audit function organisational developments, client feedback surveys
and plans for future directions.
7.5
The internal audit function also reports through the Assistant Commissioner, Ethical
Standards Command to the Senior Executive Conference every three months. The
report is a condensed version of that which is presented to the QPS Audit and Risk
Management Committee.
7.6
Final audit reports are forwarded to the Commissioner under confidential cover
through the Assistant Commissioner, Ethical Standards Command.
The
Commissioner then forwards these reports to relevant managers for action and for
reporting implementation.
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8
INTERNAL AUDIT
8.1
Internal Audit performs the audit function related to financial, human resources,
administrative and information technology issues. Its coverage also includes certain
elements of operational policing. Internal Audit’s aim is to provide a management
consultancy function to senior management within the QPS and provide the impetus
for Service-wide change. The minimum responsibilities of the Head of Internal Audit
are to provide:

assessment and evaluation of the effectiveness and efficiency of financial and
operational, reporting processes and activities; and

assistance in risk management and identification of deficiencies in risk
management.
The services provided by Internal Audit also include:
• issue of better practice documents;
• research papers on topical issues;
• presentation of financial seminars for QPS and other elements of the Queensland
Public Service; and
• presentation of workshops to provide an education and training role.
At the end of each financial year, the Head of Internal Audit will provide a statement
to the Audit and Risk Management Committee directly addressing the minimum
responsibilities.
8.2
Internal Audit is able to leverage off the skill sets of the Inspections Teams. Internal
Audit retains responsibility for drafting its own strategic and operational audit plans,
and drafting its own audit reports and recommendations. In the case of outsourced
providers, the Head of Internal Audit is responsible for ensuring the outsourced
providers have an appropriate Quality Assurance process. Internal Audit would only
use officers of the Inspections Teams where the skill sets are relevant and audit
independence can be assured. Internal Audit retains the ability to communicate
directly with the Commissioner should the situation warrant.
9
COOPERATION WITH THE QUEENSLAND
AUDIT OFFICE AND CRIME AND
MISCONDUCT COMMISSION
9.1
In compliance with s37 of the Auditor-General Act (2009) the internal audit function
informs the Queensland Audit Office (the External Auditor) of its activities in order to
minimise duplicated effort and to promote economy in audit activity.
9.2
The External Auditor receives a copy of the Strategic and Operational Plans and has
unrestricted access to the internal audit function’s reports and working papers.
9.3
The internal audit function also coordinates activities with the Crime and Misconduct
Commission when necessary.
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10
LIASION WITH RISK MANAGEMENT AND
BUSINESS CONTINUITY
10.1
The internal audit function will liaise on a regular basis with the Risk Management
and Business Continuity Unit in order to minimise duplicated effort and to promote
economy in audit and risk management / business continuity activity.
10.2
Specifically the internal audit function and the Risk Management and Business
Continuity Unit will collaborate during the annual planning process and provide
feedback to each other on issues that emerge during the year.
11
PROFESSIONAL STANDARDS AND
QUALIFICATIONS
11.1
The internal audit function performs its work in accordance with the various
Command handbooks, policies, procedures, forms and instructions and to standards
contained therein. Work is subjected to rigorous peer review.
11.2
Members of the internal audit function need to possess knowledge, skills and
disciplines required to perform their work. The Head of Internal Audit must have
professional qualifications as dictated by s.5 of the Financial and Performance
Management Standard (2009).
11.3
The internal audit function’s operations are reviewed independently by an external
body in accordance with the Institute of Internal Auditors Professional Practices
Framework.
11.4
The internal audit function’s priorities are based on risk assessments and benefit/cost
analyses, i.e. opportunities for improvement.
11.5
Reviews may be conducted by multi-disciplinary teams, comprising staff from all
sections of the internal audit function where this has been identified as the most
appropriate course of action.
11.6
Clients are invited to participate fully in the work and to provide competent or
experienced staff to assist.
11.7
From time to time, the engagement of external staff occurs to supplement the existing
skill base with specialist skills or competencies not available internally. It is a
requirement of these engagements that skill transfer occurs with existing staff to
ensure professional development.
12
CONFIDENTIALITY
12.1
The internal audit function staff are required to maintain the confidentiality of
information obtained in the course of their duties.
12.2
The internal audit function staff shall be prudent in the use of information acquired in
the course of their duties. They shall not use confidential information for personal
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gain nor in any manner which would be contrary to the law or in contravention of the
Code of Conduct for the Queensland Public Service.
13
REVIEW OF THE CHARTER
13.1
This Charter will be reviewed annually by the Audit and Risk Management
Committee. Any substantive changes will be formally approved by the Commissioner
on the advice of the Audit and Risk Management Committee.
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