What Is an Audit Charter?

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A charter is a formal document that creates and defines the functions of an organization. It also defines the organization's rules of conduct. An audit charter is a charter than establishes an internal audit department for an existing organization.


An audit is an official inspection of an organization's (or individual's) financial accounts. It can also refer to the systematic assessment of any aspect of an organization, from basic operation to risk management. Audits are usually conducted by an independent body.


The function of an audit charter, also referred to as an internal audit charter, is to establish the rules and responsibilities of an organization's internal audit department. Many organizations, from corporations to universities, have internal audit departments.


Internal Audit Department

Within an organization, an internal audit department is responsible for routinely inspecting various aspects of its parent organization to determine that all operations are being performed properly. It is also responsible for ensuring that identified problems or weaknesses are dealt with.



About the Author

Based in central Pennsylvania, Shannon Keen has been writing since 2003. She writes for various websites, specializing in film, literature and gaming. Keen started writing for her high school newspaper and went on to win a Gold Key in the Pennsylvania Scholastic Writing Competition. She is pursuing a degree in English literature at Harrisburg Area Community College.