An independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. – The IIA

 The AU FRR in Article 71 established the OIA.  Article 3 of the AU Internal Audit Regulation of July, 2012  Paragraph 9 of the AU Finance Policies and Procedure Manual details what the Internal Audit Dept. should be doing.

 The Bureau of the Pan-African Parliament (PAP) on 21st January 2005 approved the organizational structure and human resource requirements for the PAP. The structure provides for an Internal Audit Office. (Blue Book)  The recently approved structure confirms the position of OIA within the PAP.

. To enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.

As an independent appraisal function within PAP, the objective of the Office of Internal Audit is to assist management at all levels in the effective discharge of their responsibilities by providing independent analysis, appraisals, advice and recommendations concerning the activities reviewed.

The Office of Internal Audit is independent of the activities which it audits to ensure the unbiased judgement essential to its proper conduct and impartial advice to management. In order to maintain its independence, the Head of the OIA reports:  administratively to the Clerk of Parliament and  functionally to the Bureau of the PAP and currently to the Committee on Audit and Public Accounts (CAPA)

 The OIA shall exercise its assignments on its own initiative in all departments, divisions, units and offices of PAP.  The Head of the OIA is authorized to communicate directly, on his/her own initiative, to the President of the PAP and the Bureau, CAPA and the Clerk of Parliament.

 Irrespective of the preceding, the Bureau of PAP, CAPA and the Clerk of Parliament may, as deemed fit, request the Head of OIA to carry out specific or special audit assignments and investigations. However, the Head of the OIA shall determine the plan and methodology to be used in carrying out such assignments.

In order to fulfil its mission and objectives, the OIA seeks to understand the key risks of PAP and to examine and evaluate the adequacy and effectiveness of the existing system of risk management (if any) and internal controls.

 Over and above Article 4 of the AU Internal Audit Regulations the OIA of PAP reviews, appraises and reports on: (a)the extent of compliance with, relevance of and financial effect of, policies, standards, plans, practices and procedures established by the African Union(AU), PAP, Bureau and Secretariat;  (b)the extent to which assets and interests are acquired economically, used efficiently, accounted for and safeguarded from losses of all kinds arising from waste, extravagance, inefficient administration, poor value for money, fraud or other causes, and the existence of such assets;

 the suitability, accuracy, reliability and integrity of financial and other management information  (d) the integrity of processes and systems, including those under development, to ensure that controls offer adequate protection against error, fraud and loss of all kinds;  (e)the suitability of departments, divisions or units audited for carrying out their functions;

 actions taken to remedy weaknesses identified by internal audit reviews and external audits;  the extent to which programme plans and objectives are achieved;  the extent to which employees actions are in compliance with policies, standards, procedures, and applicable regulations.

 The OIA contributes to the governance process by :  assessing and promoting strong ethics and values among the staff of PAP;  assessing and improving the process by which accountability is ensured;  (iii) assessing the adequacy of communications about significant risks within PAP.

Every  Activity,  Programme,  Department,  Division and  Office/Unit of PAP fall within the scope of work of the OIA.

 The OIA shall have full, free and unrestricted access to any of the AU /PAP records, physical properties, assets, documents and personnel relevant to the subject under review. Article 6 (ii) of AUIAR.  The OIA shall have authority to invite any staff member including elected officials of the AU to produce documents, provide information and explanation deemed relevant to any activity under review or investigation. Art. 6(iii) AUIAR

 Article 6(1) of the PAP Internal Audit Charter also grants the OIA the following:  The Head of the Office of Internal Audit is authorized to:  have unrestricted access to all departments, divisions, units, offices, activities, records, information, property and personnel;  have full and free access to the Bureau;

obtain the necessary assistance of all staff; obtain specialized services from within or outside the PAP; select subjects, determine scopes of work and apply techniques required to accomplish audit objectives.

It is an obligation for the Head and staff of the OIA to ensure the confidentiality of all information and records accessed in the course of their work. Internal Audit reports are confidential documents and are only given to the Bureau of PAP through the Hon. President; the Clerk of Parliament, CAPA and those other officers who need to receive a report.

The Head of the OIA reports regularly on the results of the work of the Office of Internal Audit to the Bureau: providing regular assessment of the adequacy and effectiveness of PAP’s systems of risk management and internal control based on the work of Internal Audit; reporting significant control issues and potential for improving risk management and control processes; providing periodically, information on the status and results of the annual audit plan/programme and the sufficiency of internal audit resources.

The Head of Internal Audit is responsible for: developing an annual audit plan taking into consideration the significant risks to which PAP is exposed; submitting the plan to the Management for inputs and submission to CAPA for review and approval;

Informing the Bureau of PAP of emerging trends and developments in internal auditing practices and making recommendations for necessary revisions in the Internal Audit Charter and Internal Audit Manual. Identification and mobilization of resources; including human resource for the OIA. Developing training programmes for the staff of the OIA.

 The Head and staff of the OIA have responsibility to follow the guidelines and methodology provided in the Internal Audit Manual.  Abide by the requirements of the IIA’s Professional Practices Framework

 The Head and staff of the OIA are strongly expected to exhibit requisite professionalism, competence and integrity at all times in their work.  The Head and staff of the OIA are to be guided by the Professional Practices Framework of the IIA.

 Very low level of appreciation of and understanding of the importance of IA  Total lack of support to the OIA  No dedicated budget for OIA  Personalization of IA work  Undermining

 CAPA to meet at least four times a year with minimum of ten days per meeting  Internal Audit to have separate operating budget  Recruitment of additional staff  Resources to be provided for the purchase of an audit software.

 Senior management to make input into work programme before it is submitted to the Bureau(in the absence of an Audit Committee)  Senior management to allow internal audit to operate independently  Head of Internal Audit to attend Bureau meetings

 Continuing and enhancing relation with OIA in Addis Ababa.

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