Theaudit charteris a formal document that definesthe purpose, authority, and responsibilitiesof the internal audit function.

Audit Charter (Correct Answer – A)

Establishesroles, reporting structure, and independenceof the audit team.

Example:TheIS audit team’s roleinrisk assessmentsis outlined in the charter.

Annual Audit Plan (Incorrect – B)

Outlinesaudit activitiesbutdoes not define roles and responsibilities.

Engagement Letter (Incorrect – C)

Used forspecific audits, not theentire audit function.

Audit Scope Letter (Incorrect – D)

Detailswhat is coveredin an audit but doesnot define responsibilities.