A formal charter, approved by the audit committee, defines the scope and responsibilities of internal audit. The annual internal audit plan, approved by the audit committee, is risk-based.
The internal audit department acts as an independent appraisal function, which conducts reviews of operations and management procedures. It reports findings and recommendations to management, the audit committee and the risk committee. The head of internal audit reports administratively to the financial director and functionally to the chairman of the audit committee to whom he has unrestricted access.