The internal audit function must have a charter that clearly states the function's purpose, authority, and...

  

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The internal audit function must have a charter that clearly states the function's purpose, authority, and responsibilities and specifies the nature of the assurance and consulting services the function provides. The charter must be consistent with the Mission of Internal Audit. The Chief Auditing Executive (CAE) must periodically review the internal audit charter and present it to senior management and the board for approval. They report the results of major activities to senior management with independent, objective views on risk and internal controls within the organization. The decision to whom the CAE should report is vital for the effectiveness of the internal audit activity's independence. b) Distinguish FIVE (5) management functions to which the CAE may report to as well as its disadvantages. (25 marks) The internal audit function must have a charter that clearly states the function's purpose, authority, and responsibilities and specifies the nature of the assurance and consulting services the function provides. The charter must be consistent with the Mission of Internal Audit. The Chief Auditing Executive (CAE) must periodically review the internal audit charter and present it to senior management and the board for approval. They report the results of major activities to senior management with independent, objective views on risk and internal controls within the organization. The decision to whom the CAE should report is vital for the effectiveness of the internal audit activity's independence. b) Distinguish FIVE (5) management functions to which the CAE may report to as well as its disadvantages. (25 marks)