According to IIA guidance, which of the following statements regarding the internal audit charter is true?

According to IIA guidance, which of the following statements regarding the internal audit charter is true?
A . The nature of consulting services typically is not included in the charter.
B . The chief audit executive must formally review the charter at least once a year
C . The nature of assurances provided to parties outside of the organization typically is not included in the charter.
D . The charter typically defines the internal audit activity’s position within the organization.

View Answer

Answer: D

Explanation:

According to the IIA’s guidelines, the internal audit charter should clearly define the internal audit activity’s position within the organization. This is essential to establish the authority and scope of the internal audit function, ensuring that it has the necessary independence and resources to fulfill its duties effectively.

Reference: The Institute of Internal Auditors (IIA) guidelines on internal audit charter.