The role of internal audit is to provide independent assurance that an organization’s risk management, governance and internal control processes are operating effectively. Having a charter establishes the internal audit activity’s position within the organization, including the Head of Internal Audit’s reporting lines, access to records, people and property, and the scope of its activities.” The charter should be signed by the Audit Committee Chair and be reviewed annually.
An entity has many benefits from establishing and Internal Audit Function:
- Effective Risk Management;
- Strengthening Internal Controls;
- Governance;
- Improving efficiency and effectiveness;
- Transparency and integrity;
- Achievement of organizational goals.
