Father Saturnino Urios University

ACCOUNTANCY PROGRAM
Butuan City

The MJ Santos Hospital Housekeeping Department

Internal Audit Charter

PURPOSE:

A operational audit is ____________. The audit helps MJ Santos Hospital Housekeeping

Department to achieve its objectives by assisting all areas of the housekeeping department in
the effective discharge of their responsibilities and furnishing them with objective analyses,
appraisals, recommendations and pertinent comments concerning the activities reviewed. The
primary function of the audit team is to provide the management an independent audit report
with recommendations in assessing the overall quality and effectiveness of MJ Santos hospital
cleaning. The review also incorporates a baseline assessment of compliance with standards for
cleaning services issued by the Department of Labor and Employment (DOLE) and
Environmental Management Bureau (EMB).

AUTHORITY:

The Internal Audit Team (IAT) is a group of fourth year students from the Accountancy Program
of Father Saturnino Urios University entrusted with the function of evaluating the extent of
quality and effectiveness of MJ Santos hospital cleaning in accordance to the abovementioned
rules and regulations set by the Department of Labor and Employment (DOLE) and
Environmental Management Bureau (EMB).

The internal audit activity, with strict accountability for confidentiality and safeguarding of
records and information is authorized full, free and unrestricted access to the ________ areas
of evaluation namely ________ and any other source documents excluding financial matters
that are pertinent in carrying out the engagement. Personnel in charge are requested to assist
the internal audit activity in fulfilling its audit objective. The members of the audit team report
functionally to their instructor and to the management of MJ Santos Hospital Housekeeping
Department.

ORGANIZATION:

The engaged audit team will report functionally and operationally to the organization:

The organization will:

 Approve the internal audit charter
Approve the internal audit plan
Make appropriate inquiries of management and the audit team to determine
whether there is an appropriate scope or resource limitations.
Resolve communications from the Audit Team on the internal audit activitys
performance relative to its plan and other matters.

The audit team will communicate and interact directly with the organization.

INDEPENDENCE AND OBJECTIVITY:

The internal audit activity will remain free from interference by any element in the organization
to permit maintenance of independence and objective mental attitude. Internal auditors will
have no direct operational responsibility or authority over any activities audited. The auditors
will exhibit the highest level of professional objectivity in gathering, evaluating and
communicating information about the activity or process being examined. Internal auditors will
also make balanced assessment of all the relevant circumstances and not be unduly influenced
by their own interests or by others in forming judgments.

PROFESSIONALISM:

The internal audit activity will govern itself by adherence to the Institute of Internal Auditors
mandatory guidance including the Definition of Internal Auditing, the Code of Ethics, and the
International Standards for the Professional Practice of Internal Auditing. This mandatory
guidance constitutes principles of the fundamental requirements for the professional practice
of internal auditing and evaluating the effectiveness of the control procedures for the operation
of the internal audit activitys performance. The Institute of Internal Auditors Practice
Advisories, Practice Guides, and Position Papers will also be adhered to as applicable to guide
operations. In addition, the internal audit activity will adhere to the organizations relevant
policies and procedures and the internal audit activitys standard operating procedures manual.

RESPONSIBILITY:

The scope of internal auditing encompasses the following:

Determining the quality and effectiveness of MJ Santos hospital cleaning for
the _______ areas of evaluation with accordance to the rules and regulations
set by the Department of Labor and Employment (DOLE) and Environmental
Management Bureau (EMB).
The internal auditors are bound to make an internal operational audit report
comparing the actual observations with the standard requirements, as well as
 the recommendations provided by the said auditors for the overall betterment
of MJ Santos Hospital Housekeeping Department.
Internal auditors are obliged to conduct the audit engagement accordingly so
as to preserve their integrity, objectivity and competency, as well as in
observing utmost confidentiality in whatever situation maybe.

AUDIT PROCESS APPROACHES:

1. Entrance Conference
A meeting will be held between the internal audit team and the head staff of the
Housekeeping Department of MJ Santos Hospital. The audit team will discuss the
purpose of the audit, the time period included in the audit, and resources needed.
The management will be given the opportunity to discuss any concerns or queries
about the audit.
2. Preliminary Survey
During the preliminary survey, the auditors will interview personnel concerning
their duties and responsibilities, observe day-to-day operations, flowchart
processes and draw preliminary conclusions. Based on the preliminary survey, an
audit plan will be prepared to carry out field work.
3. Internal Audit Planning
The audit team will submit to the management an internal audit plan for review
and approval and will communicate the impact of resource limitation and relevant
changes whenever there are significant findings needed to be addressed to the
management during the conduct of audit activity. The internal audit plan will be
developed based on the prioritization by using specified audit program. The Chief
Audit Executive will review and adjust the plan, in response to any changes in the
organization. Any significant changes from the approved audit plan will be
communicated to the management through periodic activity report.
4. Field Work
Perform substantive test to obtain audit evidences and consider the extent to
which that the evidence support the relevant audit objective.
5. Report Draft
Once the fieldwork is completed, the audit team will synthesize an audit report
that reflects what was done, what was found, and any recommendations for
improvement.
6. Exit Conference
A meeting will be held between the internal audit team and the management of
MJ Santos Hospital Housekeeping Department to discuss the audit findings before
the findings be officially released. The management will be allowed to agree or
disagree with the findings but must present evidences to support the non-
concurrence with the auditors. Any recommendations by the auditors for
improvement or corrective action are also discussed at this time.
REPROTING AND MONITORING:

A written report, to be prepared and issued by the Chief Audit Executive, will be distributed as
necessary. The internal audit report may include managements response and corrective action
taken or to be taken in regard to specific findings and recommendations. Managements
response and corrective actions should include timetable for anticipated completion to be
taken and explanation for those corrective actions that will not be implemented. All significant
findings will remain on open issues until cleared.

QUALITY ASSURANCE AND IMPROVEMENT PROGRAM:

The internal audit activity will maintain a quality assurance and improvement program that
covers operational internal audit activity. The program will include and evaluation of the
internal audit activity in conformance with the definition of internal auditing and an evaluation
of the effectiveness and efficiency of the audit activities, including the identification of
opportunities for improvement.

The Chief Audit Executive will communicate the results.

KIRBY P. JOSOL
Chief Audit Executive

Name ni sir DR. EVANGELINE P. JAMILI

Iyang Position Program Dean