Having an audit charter is important for internal audit departments.Which of the following items is generally not a reason to have an audit charter?
A)It provides a commitment from management to support the internal audit department's activities.
B)It defines the skills and competencies required by the internal audit department.
C)It defines the department's authority and responsibility.
D)It defines the reporting requirements for internal audit departments.

Question

Quizplus · Accepted Answer

While defining the skills and competencies required by the internal audit department may be a useful component of an audit charter, it is not a primary reason to have one. The primary reasons are to define the department's authority and responsibility, establish reporting requirements, and provide a commitment from management to support the internal audit department's activities.

Having an Audit Charter Is Important for Internal Audit Departments