Overview
Internal auditing emerged as an idea in the 1930s in the United States, after several American institutions inspired to ease the pressure on external auditing given that the U.S. legislation, at that time, was forcing all institutions connected with stock exchanges to have their accounts externally audited in order to be approved.
At the very start, internal auditing received no attention and its role remained marginalized until a number of internal auditors formed a unified organization in New York in 1941 A.C., calling it the "American Institute of Internal Auditors". Its mission, since its inception, was to develop and regulate this profession.
Currently, internal auditing plays a significant role as an administrative tool to rationalize the administrative process according to its modern concept. At the beginning, internal auditing covered only financial records and entries, but later its scope of work expanded to include administrative and operational areas as a result of the economic conditions.
The foundation of internal audit units at governmental and public institutions was approved pursuant to the Council of Ministers’ resolution no. (235) dated Sha`ban 20th 1425 A.H., whose second paragraph stipulated that, “Internal audit units shall be founded at all bodies supervised by the General Auditing Bureau, and the Units' Chairman shall directly report to the Bureau’s President". Also, the Unified Regulation of Internal Audit Units issued pursuant to the Council of Ministers’ resolution no. (129) dated Rabi` II 6th 1428 A.H. shall be deemed as the main reference with regard to supervisory tasks and responsibilities assigned to internal audit units.
Hence, the President of Umm Al-Qura University issued the decision no. 3674, dated Safar 5th 1431 A.H., authorizing the foundation of a new department for internal auditing and assigning himself as its supervisor.
Objectives
(1) Internal auditing is considered to be an impartial and independent evaluation inside the university which helps the Higher Administration inspect and evaluate the activities of the different UQU departments. In addition, it is a supervisory method which measures the efficiency of different administrations by reviewing the administrative and financial information reflected by the records. This is implemented in the most appropriate manner with regard to the objectives, policies, systems, procedures, and laws in order to ensure effective supervision to achieve the UQU general objectives.
(2) The Internal Auditing Department helps the higher administrative entities carry out their responsibilities effectively by undertaking the following tasks:
- Inspecting and evaluating the efficiency and effectiveness of the internal auditing systems applicable in the university.
- Offering the relevant suitable, sufficient, and useful information to all the administrative and higher entities by providing them with analyses, assessments, and recommendations, which help enhance effective surveillance and improve performance for a reasonable cost.
- Providing information which helps ensure the following:
- Reliability and soundness of the information issued by or reported to the administrative entity.
- Conformity with the different objectives, policies, plans, procedures, bylaws, and regulations.
- Preservation of the assets.
- Economic and efficient use of the available resources.
- Fulfillment of the set objectives.
- Performance development and utilization of the feedback.
Mission
Contributing to improving and developing performance at Umm Al-Qura University, adding value to its departments, and helping the Higher Administration to achieve the objectives the university aspires to attain.