Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 87

According to IIA 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 approval from senior management.
3. It defines the internal audit activity’s authority and responsibilities.
4. It describes the expectations for communicating the results of a quality assurance and improvement program.

Answer options

Correct answer: B

Explanation

The internal audit charter primarily establishes the authority and responsibilities of the internal audit activity, which is why option 3 is essential. While options 1 and 2 mention resource specifications and management approval, they do not accurately reflect the charter's core purpose. Therefore, option B, which includes only statements 3 and 4, is correct.