The purpose, authority and responsibility of the internal auditing department is defined in a charter that is approved by senior management and the board of directors and assessed by the director of internal audit. Results of assessments are reported to senior management and the board. The charter should Establish the department s position within the organization. Authorize access to records, personnel and properties relevant to the performance of audits. Define the scope of internal auditing activities.
Internal auditors report to the director any situations indicating a possible conflict of interest.
Staff assignments are rotated periodically. Internal auditors do not assume operating responsibilities. The Institute of Internal Auditors, Standards for the Professional Practice of Internal Auditing .