According to MA guidance, which of the following is true with regard to the internal audit charter? 1. It specifies the minimum resources needed for assurance engagements. 2. It requires final…

Question

Options

• A1 and 4 only.
• B3 and 4 only.
• C1.2. and 4.
• D
  2. 3. and 4.

• A
  5% (1)
• B
  5% (1)
• C
  16% (3)
• D
  74% (14)

Explanation

Option D is correct because the IIA's mandatory guidance (Standard 1000) establishes that the internal audit charter must define the activity's purpose, authority, and responsibility (statement 3 is true), must be presented to senior management and the board for approval (statement 2 is true), and must address expectations for communicating results of the Quality Assurance and Improvement Program (statement 4 is true per Standard 1320 implementation guidance). Statement 1 is the distractor - the charter is a high-level governance document, not an operational one; it does not specify minimum resource requirements for individual assurance engagements (resource decisions belong in the audit plan and budget discussions, not the charter). Option A fails by including statement 1 and excluding statements 2 and 3; Option B drops the valid statement 2; Option C incorrectly includes statement 1 alongside valid ones.

Memory tip: Think of the charter as internal audit's constitution - it establishes who you are (purpose/authority/responsibility), who governs you (senior management and board approval), and how you're held accountable (QAIP communication). Constitutions don't specify operational minimums - that's for plans and budgets.

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