THE CALIFORNIA STATE UNIVERSITY
AUDIT COMMITTEE CHARTER
(RAUD 01-14-01)
RESOLVED, By the Board of Trustees of the California State University, that the following
updated 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.
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. Members will have access to financial expertise either
collectively among committee members or from a financial expert appointed to advise them. 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:
- Approve the selection or discharge of the external auditor, review the external auditors' planned audit scope
and
approach, approve any non-audit services provided by the external auditor, and resolve disagreements between
management and the external auditor regarding financial reporting.
- Review the results of the annual financial audit with the external auditor and management, including any
difficulties
encountered, and monitor the completion of recommendations.
- Monitor the university's system of internal controls, including computerized information system controls and
security;
the adequacy of financial, accounting and operational policies and practices related to financial reporting; and
the
process for monitoring compliance with laws and regulations.
- Review the annual internal audit plan, discuss the extent to which it addresses high-risk areas with the Vice
Chancellor and Chief Audit Officer and management, and approve the final audit plan and all major changes to the
plan.
- Review internal audit reports and responses, and monitor the completion of recommendations.
- Approve the internal audit mission statement, charter, and other governance documents related to internal
audit
activities in the University.
- Assure the effectiveness of the internal audit function, including its organizational structure, adequacy of
staffing
and budget, performance relative to its annual plan; and ensure there are no unjustified restrictions or
limitations.
- Call for the review of the Vice Chancellor and Chief Audit Officer, not less than once every three years, and
provide
input to the Board of Trustees on the Vice Chancellor and Chief Audit Officer’s performance. At its discretion,
the
Committee may retain outside consultants to assist with the review.
- Make recommendations to the Board of Trustees for the appointment, dismissal and compensation of the Vice
Chancellor
and Chief Audit Officer.