Terminology Index
Glossary
1801 terms
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Internal Audit Charter
The formal document that establishes an internal audit function's purpose, authority, scope, and independence, approved by the board or audit committee, giving the function its mandate to operate and access what it needs.
An internal audit charter is the founding document that authorizes and defines the internal audit function: its mission, the scope of what it may audit, its authority to access records and people, its independence and reporting line to the audit committee, and its responsibilities. Approved at board level, the charter is what gives internal audit its legitimacy and unfettered access, and it anchors the function's independence. It is a defining governance artifact for the profession.
Introduced in: Audit and Assurance
Examples
- A board-approved charter granting internal audit access to all records.
- Defining internal audit's scope and authority in the charter.
- Establishing the function's independent reporting line via the charter.
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