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Governance, Risk, Audit & Privacy · Foundational

Audit Charter

Formal document defining internal audit's purpose, authority, responsibility, and accountability.

Definition

The audit charter is approved by the board or audit committee and grants auditors access to records, personnel, and properties. It establishes the audit function's independence and reporting lines. The IIA Global Internal Audit Standards and ISACA standards both require a charter.

Example

The charter states the chief audit executive reports functionally to the audit committee and administratively to the CFO.

Exam tip

The charter, approved at the highest level, is the source of audit authority, not an engagement letter.

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