Liberia Petroleum Refining Company

Executive

Internal Audit Departmrnt

The Internal Audit Department of the Liberia Petroleum Refining Company (LPRC) exists to provide independent and objective assurance and consulting services that add value to the organization. Through a risk-based and disciplined approach, the Department supports LPRC in achieving its strategic objectives by evaluating and improving governance, risk management, and internal control processes. Its mission is to enhance organizational performance, safeguard assets, promote accountability, and provide insight that strengthens decision-making at all levels.

Professional Standards

The Internal Audit Department operates in accordance with the mandatory elements of The Institute of Internal Auditors’ International Professional Practices Framework (IPPF), including the Core Principles for the Professional Practice of Internal Auditing, the Definition of Internal Auditing, and the Code of Ethics. The Head of Internal Audit reports periodically to Executive Management and the Board of Directors or the Audit Recommendation Implementation Committee (ARIC) on audit activities, performance, and conformance with professional standards.

Scope of Work

The scope of the Internal Audit Department encompasses objective examinations of evidence to provide independent assessments of the adequacy and effectiveness of LPRC’s governance, risk management, and control processes. The Department evaluates whether systems and controls designed by management are appropriate and operating effectively to achieve organizational goals.

In carrying out its mandate, the Department examines and evaluates the management of risks that could affect the organization. This includes conducting comprehensive risk assessments, reviewing existing risk mitigation strategies, and recommending improvements to strengthen risk management frameworks.

The Department also enhances and advances operations by offering expert advice, analysis, and data-driven insights that support informed decision-making. It assesses operational processes, identifies improvement opportunities, and advises management on strategic and operational initiatives to improve efficiency and effectiveness.

A core responsibility of Internal Audit is safeguarding organizational assets. The Department evaluates controls designed to protect physical, financial, and informational assets from loss, theft, or misuse. It assesses whether assets are properly recorded and managed and recommends measures to enhance asset security and accountability.

In addition, the Department reviews resource management practices, including human capital management. It evaluates HR policies, staffing levels, recruitment processes, and resource allocation to ensure alignment with organizational objectives and optimal performance. Recommendations are provided to strengthen workforce management and improve talent attraction and retention.

The Internal Audit Department provides objective assurance to Management and the Board of Directors by conducting independent audits and assessments. It delivers unbiased findings and practical recommendations, including evaluations of internal controls over financial reporting, thereby supporting the Board and its committees in fulfilling their oversight responsibilities.

Improving internal controls is central to the Department’s function. It evaluates both the design and operational effectiveness of controls, identifies weaknesses or gaps, recommends corrective measures, and monitors the implementation of agreed improvements. This includes reviewing high-risk areas such as cash handling and fraud prevention processes.

Transparency and accountability are promoted through clear communication and comprehensive documentation of audit procedures and findings. The Department prepares detailed audit reports outlining scope, methodology, results, and recommendations, and presents these findings to senior management, the Audit Committee, and the Board. Follow-up reviews are conducted to ensure timely implementation of audit recommendations.

Finally, the Department assesses the organization’s compliance with applicable laws, regulations, and internal policies. Through compliance audits and reviews, it identifies areas of non-compliance and recommends corrective actions to ensure adherence to statutory and regulatory requirements, thereby reducing legal and reputational risks.