Abridged RBA Audit Department Charter


The Bank's Audit Department (Audit) provides independent and objective assurance and advisory services to the Reserve Bank Board (through the Audit Committee) and to senior management. Audit also provides internal audit services to Note Printing Australia Ltd. These services include advice on governance, risk management, controls and risk culture. Audit governs itself by adherence to mandatory elements of the Institute of Internal Auditors' International Professional Practices Framework.


Audit is independent of the day to day activities of the Bank and does not undertake any duties or engage in any activities that could potentially compromise its audit independence and objectivity. The Head of Audit ensures that Audit remains free of conditions that threaten its ability to carry out its activities in an unbiased manner.

The Head of Audit confirms annually to the Audit Committee the independence of the internal audit function and should independence or objectivity be impaired, discloses the details to the Chair of the Audit Committee and the Deputy Governor.


The Head of Audit reports to the Audit Committee and the Deputy Governor (who is also the Deputy Chair of the Reserve Bank Board); and also has direct access to the Governor and Audit's activities are fully supported by the Bank's Executive Committee.

Audit has full, free and unrestricted access to all Bank activities, records, property and personnel, within a reasonable period of making the request.


Audit is required to:

  • Prepare and execute a risk-based Audit Plan which is discussed by the Bank's senior management and approved by the Audit Committee;
  • review processes and systems to provide assurance and assess compliance with key internal and external requirements that could have a significant impact on operations;
  • assist in the prevention and detection of fraud by reviewing and evaluating the adequacy and effectiveness of fraud risk internal control systems in the Bank's operations;
  • review the efficiency, effectiveness and economy of the Bank's operations and identify opportunities to improve performance;
  • review projects and change management initiatives including assessing achievement of the business objectives they were designed to meet; adequate controls are incorporated in systems; and appropriate system testing is performed;
  • assess the Bank's risk culture through risk culture reviews and audits;
  • communicate the results of its engagements to the Bank's senior management and the Audit Committee;
  • share information across the Bank on better practices and lessons learned from its engagements;
  • provide assurance to external parties, such as the annual Banknote Distribution Agreement compliance reports;
  • perform special investigations and ad-hoc reviews as requested by Bank management or the Audit Committee;
  • monitor follow-up of outstanding agreed management actions and report to management and the Audit Committee on whether audit issues are completed within agreed timeframes;
  • provide advice to Bank management regarding the establishment of or improvements to the governance, risk management, risk culture, business change and internal control frameworks of the Bank; and
  • develop and maintain a Quality Assurance and Improvement Program that covers all aspects of audit activity.


This is an abridged version of the Audit Department Charter reviewed and endorsed by the Audit Committee on 2 November 2021.