The internal audit charter formally defines the internal audit activity's purpose, authority, and responsibilities. It establishes the internal audit's position within the organization and must be periodically reviewed and approved by senior management and the board of directors. The charter outlines important components like the definition of internal auditing, code of ethics, scope of responsibilities, and reporting structure.

1. Presented By:
Abdelmonem Hany CIA, CRMA, CFSA, CICA Feb. 05, 2015
Internal Audit Manager
Ahli United Bank, Egypt

2. What is internal audit charter
Components of Internal audit charter
Why charter is important
Approvals and authorizations

3.  Internal audit charter is a formal
document that defines the internal
audit activity’s purpose, authority,
and responsibilities.
 The internal audit charter establishes
the internal audit activity’s position
within the organization.

4.  The chief audit
executive must
periodically review the
internal audit charter
and present it to senior
management and the
board for approval.
 The nature of assurance and
consulting services provided to the
organization must be defined in the
internal audit charter

5.  Definition of Internal Auditing.
 Code of Ethics.
 Independence and Objectivity.
 Mission
 Scope
 Responsibilities ( IA, Management & BOD).
 Relationship with external auditors.
 Reporting Structure & Conclusion.

6.  Authorize access to records, personnel, and
physical properties relevant to the
performance of engagements.
 Define the scope of internal audit activities.
 Facilitates a periodic assessment of the
adequacy of the internal audit activities.
 Informing audit clients of internal audit
activity’s purpose, authority, & responsibility.

7.  The final approval of
the internal audit
charter resides with
the board of
directors.
 Review and
approval of the
management (CEO)
is required to
empower the charter
in order to avoid any
scope limitation may
occur.