Which of the following must be considered by the chief audit executive before writing the internal audit charter?

Question

Options

• AInternal auditors' level of competencies and skills.
• BThe manner in which the internal audit activity is viewed by the board.
• CEvaluation of staff certifications and continued development.
• DEffectiveness of the quality assurance and improvement program.

• A
  7% (2)
• B
  78% (21)
• C
  4% (1)
• D
  11% (3)

Explanation

Option B is correct because the internal audit charter is a foundational document that must be approved by the board, so the CAE must first understand how the board perceives internal audit - its purpose, authority, and scope - before drafting language that will resonate with and be accepted by that governing body. The charter's legitimacy flows from board approval, making alignment with the board's expectations a prerequisite, not an afterthought.

Options A and C (competency levels, certifications, and staff development) are operational and human-resource considerations that are managed under the charter once it exists - they inform staffing decisions, not the charter's foundational content. Option D (quality assurance and improvement program effectiveness) is similarly a product of an already-functioning audit activity; you cannot evaluate the QAIP before the charter establishes the activity's framework.

Memory tip: Think of the charter as a contract between the board and internal audit. You must understand what the other party (the board) expects before you can draft any contract - making the board's perspective the only true prerequisite among the choices.

No community discussion yet for this question.