Internal audit charter
The document that sets internal audit’s mandate, authority and position.
The charter describes the purpose, mandate, authority, scope and reporting lines of internal audit, including unrestricted access to records, people and property. The chief audit executive drafts it and the board approves it.
On the exam
The board, not management, approves the charter. Without it, internal audit’s authority is unclear.
Related terms
- Independence and objectivityIndependence is about the function’s position; objectivity is about the auditor’s mindset.
- Chief audit executive (CAE)The person who leads the internal audit function.
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