According to IIA guidance, which of the following would be included in an internal audit charter to help establish the authority of the internal audit activity?
A.
Outline expectations for communicating the results of all aspects of the internal audit activity.
B.
Declare the internal audit activity’s accountability for safeguarding assets and confidentiality.
C.
Document the chief audit executive’s (CAE's) reporting line
D.
Document agreement between the CAE and the individual to whom the CAE reports
To help establish the authority of the internal audit activity, an internal audit charter should document the chief audit executive’s (CAE's) reporting line. This information clarifies the CAE's position within the organization, reinforces their independence, and underscores the authority granted to them by the board, which is crucial for enabling the internal audit activity to fulfill its mandate effectively.
IIA Standard 1110 - Organizational Independence, which emphasizes the importance of defining the CAE’s reporting lines in the internal audit charter to ensure organizational independence.
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