Certified Internal Auditor (CIA) Practice Test

The internal audit activity's charter serves as the foundational document that delineates the internal auditor's scope of authority, responsibilities, and the rights to access necessary information. It explicitly empowers internal auditors to perform their duties, which may include reaching out to external suppliers for activities such as balance confirmations. This charter outlines the audit function's authority to carry out its role independently and objectively, allowing auditors to seek verification from third parties as part of their audit methodologies.

While policies and procedures and professional standards may provide guidance on the conduct of audits and interactions with external parties, it is the charter that formally grants the authority to establish such communications. Additionally, the Code of Ethics emphasizes principles such as integrity and objectivity but does not serve as the direct source of operational authority for performing specific tasks during an audit, such as contacting suppliers. Hence, the internal audit activity's charter is the correct choice as it explicitly defines the internal auditor's capacity to engage with outside entities during an audit engagement.