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Chapter 1.05—Audit Office Sec. 1.0501-Sec. 1.0503 (2) Sec. 1.0501–Organization and Authority: (A) The Audit Office has been established under and is responsible to the Governor of American Samoa. As a staff officer the Auditor receives supervision and direction from the Governor and the Secretary. (B) Since internal auditing is a staff or advisory function rather than a line or operating function, the internal auditor does not have authority to make, or give orders to make, changes in procedures or operation of a administration of the operations of the various departments and offices of the Executive and operating officials. The internal auditor will perform his duties by independent analysis and review of existing activities and procedures.
Sec. 1.0502—Objectives: The primary objective of the internal audit office is to assist the Executive Office in achieving an effective, efficient, and economical administration of the operataions of the various departments and offices of the Government of American Samoa. The objective requires that the internal auditor carry on activities which will assure protection of the Government's interest and aid in the improvement of the various phases of the operations. The accomplishment of these objectives includes the review of the Government's financial affairs; the testing of the adequacy of controls established to prevent the dissipation of the resources and asset of the Government; the appraisal of existing governmental controls, procedures and instructions; the determination that each department or office is carrying out the plans, policies, and procedures for which it is responsible; and the making of recommendations to strengthen effectiveness and increase efficiency of operations.
Sec. 1.0503—Activities: The Scope of work assigned to the internal audit staff will include:
1. Reviewing and Appraising the Policies, Plans, Procedures, and Records of the Government of American Samoa.-The internal auditor shall review the Departments and Offices' operating policies, plans, and procedures to determine their adequacy and effectiveness. This includes an appraisal and determination as to the extent to which information on policies, plans, and procedures is effectively distributed, understook, and accepted by all officials and employees concerned; whether the records are necessary and adequate in meeting the needs of the department or office; whether proper internal control is provided ; and identifying and reporting to the Executive Office and Department and Office heads those areas in which it appears that improvement is needed.
2. Ascertaining the Extent of Compliance with Established Policies, Plans, and Procedures, including Departmental and Office Regulations and other applicable memoranda.-The Executive Office requires some independent means by which it can be informed of the extent of compliance with policies, plans, procedures, and regulatory and other requirements, established for the purpose of guiding and controlling operations. The internal auditor should determine through a review of transactions and operations whether the office or department under audit is complying with instructions, procedures, laws, etc. The determination of compliance with acocunting and fiscal procedures involves the review of operating practices. Other activities of an operating nature which have no direct accounting or fiscal relationship should be observed as to compliance.
3. Ascertaining whether the Government's Assets are Property Accounted for and Safeguarded from Losses.—This will include a determination whether all assets are properly accounted for and whether adequate controls are established to protect such assets from theft, deterioration, and misuse; the detection of fraud or dishonesty; and the identification of actual or potential losses or any practices which could result in loss to the Government.
4. Ascertaining the Degree of Reliability of Accounting and Supporting Statistical Data Developed within the Department or Office.—This will include a verification of the correctness of the accounts and a determination as to whether they are following acceptable accounting principles and confirming the validity of the data produced by the regular accounting processes ; and reviewing accounting and supporting statistical reports for accuracy and usefulness to the Executive Office.
5. Observation of Inefficiency and Waste.--This activity will include an appraisal of performance under the Government's policies, plans, and procedures, and any observation that the internal audit may make of inefficiency and waste in the operations and management of the office or department. It will also include a review of the effectiveness of new methods which have been established to determine if improvements have been attained and whether the objectives desired have been accomplished. Sec. 1.0504General:
1. Each internal audit will include those elements required to accomplish the objectives of internal auditing taking into consideration the type of or organization, the nature of the operation involved, and the general conditions to be served. The auditor's review and appraisal does not in any way relieve department and office heads primary responsibilities assigned to them. The internal auditor is not responsible for developing new organization methods, systems or procedures. Such responsibility would give him a vested interest in the results and would lead to natural bias when subsequently, in the course of audit, he would be required to appraise his own work.
2. It will be necessary for the internal auditor to cooporate with representatives of the General Accounting Office in connection with their audits of the Government of American Samoa. This coordination of audit activities is essential since the work of the internal auditor will affect the scope and extent of examination work which may be performed by the General Accounting Office auditors.
3. Upon completion of the examination, the Audit Office shall submit to the Governor a report, supported by relevant financial data, outlining the findings and recommendations of the audit. Copies of the report shall be forwarded to the activity reported on and to the Director of Administrative Services unless otherwise directed.
4. The books and related records of the various departments and offices shall be ready for examination at any time and the Auditor and his staff shall be furnished with the help and information necessary to accomplish their mission.
Sec. 1,0505—Cancellation: The cancels in its entirely Administrative Memorandum No. 165 and all supplements thereto and any other memorandum or order that conflicts with the above.