A newly appointed chief audit executive (CAE) is tasked with creating a new internal audit activity within the organization. Which of the following would the CAE need to include in the new internal audit charter?
A.
The requirement to provide an annual cost analysis that justifies having an internal audit activity
B.
The specific engagements that the internal audit activity will perform for the organization
C.
The board s oversight role and responsibilities pertaining to the internal audit activity
D.
The relevant regulations that will guide the internal audit activity's regulatory compliance assessments
An internal audit charter is a formal document that defines the internal audit activity's purpose, authority, and responsibility. According to IIA standards, the charter should also establish the internal audit activity's position within the organization, including the nature of the chief audit executive's functional reporting relationship with the board. This helps ensure that the internal audit activity has sufficient authority and resources, and that there is appropriate oversight by the board.
The Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF) - Standards regarding audit charter
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit