The Office of the Auditor General shall be responsible for planning, organizing, directing and controlling a broad, comprehensive program of auditing both internally and externally including without limitation all projects and programs of the Bank group. The Office shall provide all levels of management with periodic, independent and objective appraisals and audits of financial, accounting, operational, administrative and other activities, including identifying possible means of improving accountability, efficiency of operations and economy in the use of resources .
Role and responsibility
The overall responsibility is to provide independent, objective assurance and consulting services designed to add value and improve the Bank's operations and shall include but not be limited to:
- Developing a flexible annual audit plan using appropriate risk-based methodology, including any risks or control concerns identified by management, and submit the plan to the President and Board audit committee for review and approval;
- Determining whether the Bank's framework of risk management, control, and governance processes, as designed and implemented by management, is adequate and functioning by assessing the adequacy and effectiveness of the Bank's processes for controlling its activities and managing its risks;
- Performing financial, operational, administrative and information technology audits, including without limitation, field verification of projects and programs financed by the Bank;
- Reviewing the systems of internal controls maintained by the Bank to safeguard its financial and physical assets, verifying the existence of related assets and making recommendations to correct any weaknesses;
- Reviewing the reliability, accuracy and integrity of significant financial and automated management information systems, ensuring that such systems employ essential controls which minimize the risk of unauthorized activity;
- Implementing the annual audit plan, as approved, including, as appropriate, any special tasks or assignments requested by the President and/or the Board; and, reporting periodically on the status and results of the annual audit plan as well as on the adequacy of the Office’s resources;
- Providing consulting, advisory and audit services, in accordance with the institute of internal auditors’ standards, to assist management in meeting its objectives;
- Evaluating and assessing significant new or changing services, processes, operations, and controls relating to their development and implementation;
- Liaising with the external auditors as appropriate, for the purpose of providing optimal audit coverage to the Bank;
- Reporting to management on significant issues related to the processes for controlling the activities of the Bank, including potential improvements to those processes;
- Maintaining an on-going system of monitoring the adequacy of the actions taken by management to implement internal and external audit recommendations and reporting on the status of implementation;
- Providing advice and assisting client departments on matters relating to internal controls;
- Implement a quality assurance program by which the Auditor General ensures that internal auditing processes and procedures are in accordance with the standards;
- Undertaking such actions as shall be necessary in furtherance of the above responsibilities that are consistent with the provisions of the Financial Regulations and in conformity with the Institute of Internal Auditors' standards and pertinent bank policies.
Independence and Objectivity
The Auditor General shall report directly to the President and shall carry out his/her functions in total independence and may not be influenced directly or indirectly in how it conducts his/her works. The President shall appoint and remove the Auditor General in consultation with the Board of Directors. The appointment of the Auditor General shall be for a period of 5 years renewable once and he/she shall not be eligible for staff appointment thereafter. The Auditor General shall meet and report regularly to the President, the Audit and Finance Committee and the Board on the activities of the Office and on the sufficiency of resources.
The Auditor General shall be an ex-officio member of the Oversight Committee on Corruption and Fraud.
Relationship with the External Auditors
The Auditor General shall coordinate internal audit efforts with External Auditors so as to provide adequate audit coverage, minimize possible duplication of efforts and provide maximum review of the Bank's activities.
Relationship with the Integrity and Anti-Corruption Department (IACD)
If during the course of an audit, the Auditor General believes a detailed investigation is necessary, he/she may refer the cases to the Integrity and Anti-Corruption Department. IACD may also refer audit and non-corruption related cases to OAGL for action.