HC-10.1.5
The internal audit charter must establish, at a minimum:
(a) The IAF’s standing within the licensee , its authority, responsibilities and relations with other control functions in a manner that promotes the effectiveness of the function;
(b) The purpose and scope of the IAF;
(c) The obligation of the internal auditors to communicate the results of their engagements and a description of how and to whom this must be done (reporting line);
(d) The criteria for when and how the IAF may outsource some of its engagements to external experts;
(e) The terms and conditions according to which the IAF can be called upon to provide consulting or advisory services or to carry out other special tasks without creating a conflict with its core function;
(f) The responsibility and accountability of the head of internal audit;
(g) The requirement to comply with the international standard on internal audit issued by The Institute of Internal Auditor; and
(h) Procedures for the coordination of the IAF with the external auditor.
Added: April 2023