The mission of the Internal Audit Department is to provide independent, objective assurance and advisory services designed to add value and improve operations in the Goddard Group of Companies. It helps the Group accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Reporting and Accountability

The Manager - Group Internal Audit Department, in the discharge of his/her duties, shall report administratively to the Group Managing Director and functionally to the Audit Committee in order to:

• Develop a flexible annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, and submit the plan to the Audit Committee for review and approval as well as periodic updates.
• Implement the plan as approved, including as appropriate any special tasks or projects requested by the Managing Director and the Audit Committee.
• Provide on an individual company basis an assessment of the adequacy and effectiveness of the processes for controlling its activities and managing its risks in the areas set forth under the mission and scope of work. The Manager shall take directly to the Audit Committee matters that are of significant magnitude or concern to require their immediate attention.

Authorization and Responsibility

Authorization is granted for full and complete access to records (manual & automated), physical property and personnel of the Group that relate to the areas under audit. The Internal Audit Department is expected to follow the highest standards of confidentiality with regard to sensitive information.

The Internal Audit Department has no direct responsibility for the operations and functions within audited areas. It will however make recommendations regarding the management of risks, the quality of those operations or the adequacy of internal controls in the normal course of audits. While the Department will take an active role in the formulation of policy and the development of new systems, it will be in an advisory capacity with final decisions and responsibility for implementation being that of the appropriate Group and Company Management.

Scope of Work

The scope of work of the internal auditing department is to determine whether the Group's network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:-

• Risks are appropriately identified and managed.
• Opportunities for improving profitability, management control, as well as the Group's and individual company's image are identified.
• Interaction with the various governance groups occurs as needed.
• Significant financial, managerial, and operating information is accurate, reliable, timely as well as useful and pertinent to management objectives.
• Information systems are developed or obtained with adequate, effective management controls.
• All actions are in compliance with the Group and individual company policies, standards, and procedures, as well as applicable laws and regulations.
• Resources are acquired economically, used efficiently, and adequately protected.
• Programs, plans, and objectives are achieved.
• Quality and continuous improvement are fostered in the Group's Head office and individual company processes.
• Significant legislative or regulatory issues impacting the group and individual companies are recognized and addressed appropriately.

The Manager - Group Internal Audit Department shall have full and free access to the Audit Committee.

The personnel of the Internal Audit Department report to the Manager, who reports functionally to the Audit Committee and administratively to the Group Managing Director in a manner outlined in the section on Reporting and Accountability. The Manager will include as part of the reports to the Audit Committee a regular report on internal audit personnel.

Relationship with External Auditors

The responsibilities and the objectives of the internal and external auditing groups are generally different. However, where the objectives coincide, the Internal Audit Department will co-ordinate audit work with the external auditors, as appropriate, for the purpose of providing optimal audit coverage to the group at a reasonable overall cost.

Standards of Audit Practice

The Internal Audit Department will meet or exceed the Standards for the Professional Practice of Internal Auditing of The Institute of Internal Auditors.