Which four of the following statements are inappropriate?

a. The charter should be simple and short, preferably contained within a single sheet of paper that will fit on a web site screen.

b. The concept of audit independence should be highlighted.

c. If senior management in the organization does not support the charter then considerable problems will ensue.

d. The reporting process should be briefly described.

e. The auditors’ code of ethics should be documented in the charter.

f. The requirement that internal audit assume no line responsibilities in the organization should be noted.

g. The position regarding responsibilities for detecting, investigating and resolving frauds should be clearly established.

h. A note regarding the need for full co-operation with the organization’s external auditor may also be included.

i. The charter should be a statement of basic principles and not a procedures manual.

j. The charter should be formally approved by the DF.

k. A poorly thought-out charter (or for that matter, where there is no formal charter in existence) has a knock-on effect on other standards that are really dependent on the formal authority to discharge an audit service.

l. As noted, unrestricted access cannot be agreed within the charter and this should be negotiated at all levels throughout the organization.

m. The charter should be a standing document and should not require changing for many years.

n. The scope of audit work should include non-audit consultancy work as a direct response to meeting management’s needs.

o. Whatever the expectations implied by the charter, the CAE should ensure that the audit function can meet them.