Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 223

Which of the following is not true with regard to the internal audit charter?

Answer options

• A. It defines the authorities and responsibilities of the internal audit activity.
• B. It specifies the minimum resources needed for the internal audit activity.
• C. It provides a basis for evaluating the internal audit activity.
• D. It should be approved by senior management and the board.

Correct answer: B

Explanation

The correct answer is B because the internal audit charter does not specify minimum resource requirements; it focuses on defining the structure and purpose of the internal audit activity. Options A, C, and D are true as they accurately describe the roles and requirements of the internal audit charter.