HC-6.5.26
At a minimum, the internal audit charter must establish:
(a) The internal audit function's standing within the bank, its authority, its responsibilities and its relations with other control functions in a manner that promotes the effectiveness of the function as described in Paragraphs HC-6.5.1 and HC-6.5.2;
(b) The purpose and scope of the internal audit function;
(d) 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);
(e) The criteria for when and how the internal audit function may outsource some of its engagements to external experts;
(f) The terms and conditions according to which the internal audit function can be called upon to provide consulting or advisory services or to carry out other special tasks;
(g) The responsibility and accountability of the head of internal audit;
(h) A requirement to comply with sound internal auditing standards; and
(i) Procedures for the coordination of the internal audit function with the external auditor.
Added: April 2018