Internal Audit Charter

Primary Related Standard
1000 – Purpose, Authority, and Responsibility
The purpose, authority, and responsibility of the internal audit activity must be formally defined
in an internal audit charter, consistent with the Definition of Internal Auditing, the Code of
Ethics, and the Standards. The chief audit executive must periodically review the internal audit
charter and present it to senior management and the board for approval.
Interpretation:
The internal audit charter is a formal document that defines the internal audit activity's purpose,
authority, and responsibility. The internal audit charter establishes the internal audit activity's
position within the organization; authorizes access to records, personnel, and physical
properties relevant to the performance of engagements; and defines the scope of internal audit
activities. Final approval of the internal audit charter resides with the board.
1. Providing a formal, written internal audit charter is critical in managing the internal audit
activity. The internal audit charter provides a recognized statement for review and
acceptance by management and for approval, as documented in the minutes, by the board.
It also facilitates a periodic assessment of the adequacy of the internal audit activity’s
purpose, authority, and responsibility, which establishes the role of the internal audit activity.
If a question should arise, the internal audit charter provides a formal, written agreement
with management and the board about the organization’s internal audit activity.
2. The chief audit executive (CAE) is responsible for periodically assessing whether the
internal audit activity’s purpose, authority, and responsibility, as defined in the internal audit
charter, continue to be adequate to enable the activity to accomplish its objectives. The
CAE is also responsible for communicating the result of this assessment to senior
management and the board.