Audit Charter

Audit charter serves as a basis or authorization for every effective internal audit program. The internal audit activity's charter should be in writing.

What should be included in the Charter

1000 Purpose, Authority, and Responsibility
The purpose, authority, and responsibility of the internal audit activity should be formally defined in a charter, consistent with the Standards, and approved by the board.

The charter should:

• (a) establish the internal audit activity's position within the organization;
• (b) authorize access to records, personnel,and physical properties relevant to the performance of engagements; and
• (c) define the scope of internal audit activities.

Who approve the audit charter
The chief audit executive (CAE) should seek approval of the charter by senior management as well as acceptance by the board. The approval of the charter should be documented in the governing body minutes. The Audit Committee is responsible for aproving the audit charter.