Audit Committee Charter

THE CALIFORNIA STATE UNIVERSITY 

AUDIT COMMITTEE CHARTER (RA 01-05-02 )

RESOLVED, By the Board of Trustees of the California State University, that the following Charter for the Committee on Audit is adopted.

Purpose

The purpose of the Committee on Audit is to assist the Trustees in fulfilling its oversight responsibilities for the financial reporting process, system of internal control over financial reporting, external and internal audit processes, and the university's process for monitoring compliance with laws and regulations, and the code of ethics.

Composition and Meetings

The Committee on Audit will consist of at least five members as determined by the Trustees through the Committee on Committees. Each committee member will be independent and at least one member must have accounting or financial expertise. Regular meetings of the Committee on Audit will be held on the same dates and in the same locations as regular meetings of the Trustees. Other meetings may be called as provided for in the Rules Governing the Board of Trustees.

Responsibility and Authority

The Committee on Audit functions under the Rules Governing the Board of Trustees and is responsible for the overall audit function within the California State University. In this context, the Committee on Audit shall:

1. Approve the selection or discharge of the external auditor, review the external auditors' planned audit scope, approve any non-audit services provided by the external auditor, and resolve disagreements between management and the external auditor regarding financial reporting.
   


2. Review the results of the audit with the external auditor and management, including any difficulties encountered, and monitor the completion of recommendations.
   


3. Monitor the university's system of internal controls and the adequacy of financial, accounting and operational policies and practices related to financial reporting; and review the process for communicating the code of ethics, and for monitoring compliance therewith.
   


4. Review the annual internal audit plan, discuss the extent to which it addresses high-risk areas with the University Auditor and management, and approve the final audit plan.
   


5. Review internal audit reports and responses, and monitor the completion of recommendations.
   


6. Approve the internal audit mission statement, charter, and other governance documents related to internal audit activities in the University.
   


7. Assure the effectiveness of the internal audit function, including the adequacy of its staffing and budget, performance relative to its annual plan, the existence of unjustified restrictions or limitations, and concurrence in the appointment or dismissal of the University Auditor.