Ms Kgomotso Hochobeb - Head: Internal Audit
The Internal Audit Department provides independent and objective assurance to the Board and Management about the appropriateness and adequacy of internal controls in the company.
A key competency area of the Internal Audit Department is the coordination of corporate and company-wide risks. The department functions on the basis of a systematic and disciplined approach to evaluating and improving the effectiveness of risk management, internal controls and company-wide governance procedures. Risk based audits are carried out as part of the Board Audit Committee approved Annual Plan with reports detailing control weaknesses and risk areas – with the respective audit recommendations to remedy such weaknesses.
The Internal Audit Department also conducts “inspections”, which are surprise audits conducted at the post offices. These inspections are conducted randomly and without prior knowledge of the post office in question.
The Board Audit Committee meets quarterly and is well informed of audits conducted and other activities of the department.
The Internal Audit Department consists of two divisions:
Internal Audit – Responsible for performing risk-based audits according to the approved Annual Plan; ad hoc assignments requested by Management; assisting in the risk management process of the company; performing forensic investigations.
The Inspectorate – Responsible for auditing the post offices; ad hoc assignments requested by Management; assist in the risk management process of the company; performing forensic investigations.
As per Board approved Risk Management Framework, the Internal Audit Department has the role of coordinating and facilitating the Risk Management Process of the Company.
Annually, the Board and Management meet and review the risks inherent in the company. An annual Risk Assessment Workshop is facilitated by the Internal Audit Department where all company risks are extensively debated per department, assessed, rated and classified in order to ensure that the Company is aware of the risks it faces in the pursuit of its business objectives. The workshop also ensures that these risks are in line with its Risk Appetite as prescribed by the Risk Framework.
The Head of the Internal Audit Department has unrestricted access to the Chairman of the Board, Board Audit Committee and the Chief Executive Officer. The Board Audit Committee approves the Annual Work Plan of the Internal Audit Department on an annual basis.
An anonymous whistle-blowing telephone line was launched during 2011. This gives staff and the public the opportunity to report any fraud or corruption observed in the Company without fear of victimisation.
Ways to report
Free call from landline: 0800 333 555 (Not available for mobile phone)
Free fax: 0800 00 77 88
Website: Click here to submit tipoff now
TERMS OF REFERENCE
Terms of Reference
The Internal Audit department is an appraisal function established within the organisation to provide independent, objective assurance and consulting services designed to add value and improve the organisation’s operations. It helps the organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
The Audit Committee defines the Internal Audit Department Terms of Reference, including the authority and responsibilities of the department.
The scope of the work of the Internal Audit Department is to appraise the adequacy and effectiveness of the organisation’s systems for risk management, controls and governance processes, as designed and implemented by management to:
Opportunities for improving management control, profitability, and the organisation’s image may be identified during audits. They will be communicated to the appropriate level of management.
The audit team should be seen as colleagues who aid the executives and senior management in controlling their business units.
The internal audit team shall have a standing in the company that commands the necessary support. It is the Board of Directors and the Audit Committee that ensure the internal audit team has the necessary standing.
Internal Audit should report to a level within the company that allows it to accomplish its responsibilities. The department is functionally responsible to the Chairperson of the Audit Committee and administratively will report to the Chief Executive Officer. The Head: Internal Audit shall have no executive or managerial powers and duties in the company, except those relating to the management of the Internal Audit department.
The department shall have an independent status within the company and will not be involved in the day-to-day checking of internal control systems of the company. Also, the department shall not be responsible or involved in the implementation of internal control systems, but must be consulted on the adequacy of controls when they are first implemented.
The Head: Internal Audit has unrestricted access to the chairperson of the Audit Committee and the Chief Executive Officer.
The Internal Audit Department is authorised to:
The Internal Audit Department is not authorised to:
Documents and information given to staff of the Internal Audit department will be treated in the same prudent manner as by those employees normally accountable for such documents and information.
Internal Audit staff members have no direct responsibility or authority over any of the activities or operations that they review. They will not implement procedures, prepare records, or engage in activities that would normally be reviewed by internal auditors.
Subject to the overall guidelines and policies of the Board of Directors and of the Audit Committee, the Internal Audit department shall be solely responsible for the planning, implementation and reporting of internal audit reviews. For this purpose, the department shall:
Though the Internal Audit Department will have an independent status within the company, the department shall interact with and complement other divisions or units to enhance effective control processes.
The Head: Internal Audit, in the discharge of his/her duties, shall be accountable to the Audit Committee to:
The Internal Audit department will: