KINAZO, Maria Recheille B.TTH 12:00 NN - 3:00 PMAC 516BInternal Audit Charter Reflection

The charter defines the purpose, authority, and responsibility of the Internal

Auditing Office. It establishes the Internal Audit Office’s position within the

organization; authorizes access to records, personnel, and physical properties relevant

to the performance of engagements; and defines the scope of work.

I really tried to look for China Banking Corporation’s Internal Audit Charter but

sadly I only found their Audit Committee charter which I thought would be the nearest

possible output I could pass since it’s a charter as well. I’ve seen in China Bank’s audit

charter that the authority of the audit committee is very explicit which for me is very

important to avoid confusion as to who has the right authority to do the work or until

what case is that authority applicable. Their charter is also straightforward as to their

purpose, objectives, membership, voting and quorum requirements, duties and

responsibilities, meetings and access, self-assessment, and charter review.

As I was reading the charter I was able to differentiate an audit committee

charter to an internal audit charter. It was confusing at first but thank God I was able to

understand them. The Internal Audit charter serves as a guide to the Internal Audit

Department of the Company in the performance of its duties. It intends to provide a

basis for management and the Audit Committee to use in evaluating the operations of

the Internal Audit function, while the audit committee charter must complement with

the internal audit charter.

This activity is really a great help for us students to know and see the application

of what we are studying inside the classroom in the real business world. And audit

charter might be of little importance to others but a good audit charter can help internal

auditors achieve their goal of adding value to the company through proper assessment

of risks, control and governance processes. The most important thing that I’ve learned

in this activity is that it is not just the members of the committee that needs to be

evaluated as to their practices and performance but also the activities of the committee

to achieve and maintain a high degree of effectiveness.

Conglomerate Map or Group Structure