Relationship with External Auditors

In order to avoid duplication of audit coverage and to keep in touch with issues attracting audit attention, the Internal Audit Office liaises closely with the Department of the Auditor General and any other external auditors, who audit Agencies funded by the Consolidated Fund.

International Standards

The   Internal   Audit   Office   is   guided   by   the  “International Standards for the Professional Practice of Internal Auditing (Standards)” established by the Institute of Internal Auditors.

The purpose of the Standards is to:

• Delineate basic principles that represent the practice of internal auditing.
• Provide a framework for performing and promoting a broad range of value-added internal auditing.
• Establish the basis for the evaluation of internal audit performance.
• Foster improved organizational processes and operations.
• Auditors are members of the Institute of Internal Auditors (USA)

Reason for Establishing an Internal Audit Office

The Government of the Bahamas established an Internal Audit Office within the Ministry of Finance  (Financial  Administration  and  Audit  Act amended 2010) to enhance efficiency, accountability and transparency in the management of Government resources and to provide assurance  to  Permanent Secretaries and or Head of Departments on the adequacy of various systems and procedures employed to achieve sound financial management and economic, efficient and effective utilisation of Government resources.

Authority

The Internal Audit Office is authorized by the Government of the Bahamas to conduct a comprehensive program of internal auditing. To accomplish its objectives, internal auditors are authorized to have full, free and unrestricted access to records, property and personnel necessary for the performance of their duties.

Objective

The objective of internal auditing is to assist managers in Ministries and Departments in the effective discharge of their responsibilities by providing professional and impartial opinion on systems of risk management, control and governance and furnishing them with analyses, practical advice, recommendations  and  pertinent,  timely  comments concerning the activities reviewed.

Responsibility

The Internal Audit Office will develop and execute comprehensive risk based audit plans to ensure Adequate coverage of Ministries/Departments being audited. Comprehensive reports on the Internal Audit function will be made to the Financial Secretary, Permanent Secretaries and other Heads of Departments.

Approach

The Internal Audit approach is practical, participative and professional and seeks to comply with International Standards  on Auditing.  The methodology is risk-based and concentrates on areas of particular concern; evaluating the operations and effectiveness of the controls.