Long Island University Internal
Auditing Department Charter

Fraud
Deterrence of fraud is the responsibility of management. The Internal Auditing department is responsible for examining and evaluating the adequacy and the effectiveness of actions taken by management to fulfill this obligation.

Internal auditors should have sufficient knowledge of fraud to be able to identify indicators that fraud might have occurred. If significant control weaknesses are detected, additional tests conducted by internal auditors should include tests directed toward the identification of other indicators of fraud.

Internal auditors are not expected to have knowledge equivalent to that of a person whose primary responsibility is to detect and investigate fraud. Also, auditing procedures alone, even when carried out with due professional care, do not guarantee that fraud will be detected.

The Internal Auditing department will assist in the investigation of fraud in order to:

• determine if controls need to be implemented or strengthened
• design audit tests to help disclose the existence of similar frauds in the future
• help meet the internal auditor's responsibility to maintain sufficient knowledge of fraud.

A written report will be issued at the conclusion of the investigation. It will include all findings, conclusions, recommendations, and corrective action taken.

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Internal Auditing Department Charter