Singapore Government

IA Essentials #2

The IA Charter, as described in the International Standards for the Professional Practice of IA ("Standards"), is a formal document that defines:

  • The Purpose,
  • The Authority; and
  • The Responsibility

of the IA activity. The IA Charter also establishes the IA activity’s position within the organisation, the scope of IA activities, and grants authority to the IA function, enabling the IA function access to records, personnel and physical properties that are relevant to the performance of engagements.

The Singapore Code of Corporate Governance (Code) Principle13.1 states that the Internal Auditor’s line of reporting should be to the Audit Committee Chairman. This should be clearly stated in the IA Charter as part of establishing the IA activity’s position within the organisation. The same principle further states that the Internal Auditor should have unfettered access to all the company’s documents, records, properties and personnel, thus this should also be stated in the IA Charter to formalise this authority granted.

Finally, the Chief Audit Executive must periodically assess the IA Charter and to present it for approval by Senior Management and the Board.

For a sample of an IA Charter, please refer to the Guidebook for Audit Committees in Singapore (Appendix D2).

Click here to read the guidebook for Audit Committees in Singapore

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