Documenting independence and objectivity: a well-written charter provides the framework and purpose for internal audit conduct

Many companies accept the thought of an internal audit charter to document when an internal audit is supposed to be independent and objective. An internal audit charter is a formal document that outlines the purpose, authority, and responsibility. It gives the internal audit department a place inside the company that gives a formal written agreement about the position of the company to management and the board.
It is expected for an internal auditor to be independent in appearance and in the information that is provided when completing their job in the organization as it is reflected as a part of management. Objectivity is the auditor’s balanced approach with making sure that his work is not compromised and free from material conflict, if there are questions about an auditor’s independence and objectivity, it should be taken care when they arise. If there seems to be a weakness in the auditor’s independence and objectivity, it should be talked about with the CAE who reports it to the board and audit committee.
Organizational Independence should be reinforced by the senior management, the audit committee and the board of directors and is more about whom the CAE reports to within the company, letting the internal audit do its role. Damage to an internal auditor department’s independence and objectivity will arise when there are restricted limits to the records they have access to, performance of procedures and the approval of staffing and financial backing, these limitations should be reported to the proper party within the company. An internal charter can minimize these limitations to ensure there is independence and objectivity even though it cannot prevent impairment from happening.
An internal audit charter must create an