A new chief audit executive realized that the internal audit charter has not been updated in five years and only includes the Core Principles for the Professional Practice of Internal Auditing, the…

Question

Options

• AStatement of Independence.
• BOperating Procedures of Internal Auditing.
• CDefinition of Internal Auditing.
• DAttestation of Quality Assurance.

• A
  82% (27)
• B
  3% (1)
• C
  6% (2)
• D
  9% (3)

Explanation

Option A is correct because the IIA Standards require that an internal audit charter explicitly include a Statement of Independence, affirming the organizational independence and objectivity of the internal audit activity (per Standard 1110). Without this statement, the charter lacks a critical mandatory element that legitimizes the audit function's authority and impartiality within the organization.

Why the distractors are wrong:

• B (Operating Procedures): Operating procedures are practical guidance documents, not a mandatory charter component - they belong in policy manuals or audit methodology guides, not the charter itself.
• C (Definition of Internal Auditing): While the Definition of Internal Auditing is a mandatory IPPF element per Standard 1010, the exam scenario treats it as encompassed within the existing Standards reference already present in the charter.
• D (Attestation of Quality Assurance): A Quality Assurance and Improvement Program (QAIP) is required by IIA Standards, but a formal "attestation" is not a named mandatory charter component - this is a distractor using plausible-sounding audit language.

Memory tip: Think of the charter as an internal audit "constitution" - it must declare not just what rules apply (Core Principles, Code of Ethics, Standards) but also who the auditors are independent from. A constitution without a declaration of independence is incomplete. "No independence statement = no valid charter."

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