Centralised internal audit guidelines
In order to ensure operational transparency and efficiency, the EPSO-G group applies a centralised internal auditing system. This means that an internal audit department carries out its functions on a group-wide basis and is directly accountable to the EPSO-G’s management board which, taking into account the recommendations of the audit committee, appoints and dismisses the head of the department, approves the job duties, remuneration, budget, resources and action plan.
The mission of the EPSO-G internal audit is to create added value for all the group companies and contribute to the achievement of their business objectives by systematically and comprehensively evaluating and helping them to improve the effectiveness of management, risk management and control processes. These functions are implemented through independent and impartial assurance and advisory activities.
The employees of the department carrie out internal audits and regularly monitors the implementation of the recommendations as well as the correction of other drawbacks related to internal control, that were identified by external auditors, the regulator and the state control institutions.
The principles of EPSO-G internal audit:
- Independence. This condition means that the internal audit department shall impartially perform its functions that are ensured through a direct and unrestricted access to the group’s senior executives and EPSO-G’s board, as well as to the boards of other companies of EPSO-G group. The internal audit department has the right to access all the information required to perform its functions. The internal audit must be provided with all the necessary information when it performs the assurance, advisory services and other tasks after significant changes in the organisation, processes, legislation, or if significant violations of established internal requirements are found, etc.
- Impartiality. This condition means that internal auditors will be able to guarantee the results of their work and will not compromise on the quality of their work. During audits, the judgment of internal auditors is not influenced by the opinions of other persons, i.e. they are impartial, act without prejudice, avoid any conflict of interests, and support their findings by found facts and evidence.
- Confidentiality. The employees of the internal audit department shall take into account the content and value of the information received in the course of their tasks and they respect the rights of its owner; therefore, they shall not disclose such information without appropriate permission, unless required by law or professional necessity. When presenting reports of audits and reviews to external parties, it shall be indicated that restrictions apply on the dissemination and use of their results.
- Competence. Internal auditors perform only such tasks for which they have the necessary knowledge, skills and experience. If the department does not have the required expertise to carry out a task, consultants may be used.
- Accountability. Each quarter, the head of the internal audit shall report to the EPSO-G’s board and provides information to the audit committee on the implementation of the business plan, the department’s findings regarding found significant risks and control issues, as well as information on the implemented recommendations and recommendations whose implementation is delayed. All the internal audit reports must be presented to the CEO of EPSO-G and the top-level executives involved in the audited activities.