The internal audit charter is a formal document that defines the objective, authority and responsibility of the internal audit activity. The internal audit charter specifies the position of the internal audit activity within the organization, including the nature of functional reporting relationship between the Chief Executive Audit with the Board; authorizes access to records, personnel, and physical property relevant to the performance of the agreement; and defines the scope of the internal audit activity.
The objective, authority and responsibility of the internal audit activity should be formally defined in the internal audit charter, consistent with the Internal Audit Mission and the mandatory elements of the International Professional Practice Framework (Core Principles for the Professional Practice of Internal Audit, Codes of Conduct, Standards and the Definition of Internal Audit).
Internal audit is an independent and objective consulting activity designed to add value and improve an organization’s operations. It helps the organization to achieve its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
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