Who is in the BEST position to approve changes to the audit charter?

The audit committee is the best position to approve changes to the audit charter because it plays a crucial role in overseeing the internal audit function and ensuring that it operates effectively and independently. The audit charter outlines the purpose, authority, and responsibilities of the internal audit activity, and it is essential for this document to receive appropriate scrutiny and approval from those who represent the interests of stakeholders and governance.

The audit committee typically consists of members of the board of directors, often with financial and auditing experience, which makes them particularly well-suited to understand the significance and implications of changes to the audit charter. Their approval signifies that they support the internal audit's mission and its alignment with the organization's goals and regulatory requirements.

While the board of directors and executive management have critical roles in governance and operations, their involvement in audit specifics, like the audit charter, is usually less direct. The director of internal audit may propose changes based on operational needs and best practices, but it is the audit committee that authoritatively reviews and approves changes to ensure they align with the organization's objectives and compliance standards.