Terms of reference :

The overall status and remit of internal audit should be formalized in terms of reference it is often referred to as an audit charter, and approved by the board, normally through the audit committee. These should then be communicated to relevant people within the organisation. Internal audit’s terms of reference or charter should provide clarity about its:

– Strategy and objectives;

– Role and responsibilities within the organisation;

– Scope of work;

– Accountability to the audit committee;

– Reporting lines for line management purposes;

– Accessibility to the board and the audit committee; and

– Unfettered access to all information, people and records across the organisation.

The terms of reference should make it clear that internal audit should not be put in a position where it has to
review its own work.