What Is a Committee Charter?

by Scott Wolfenden; Updated September 26, 2017
A committe charter is a document designed to state a company's internal regulations.

The supreme law of the United States is defined in the U.S. Constitution, which can be described as a governmental charter. Similarly, corporations adopt a committee charter which acts like an internal constitution. The committee charter is an internal document defining the policies of the corporation or the regulations of a specific function or department within the corporation.

Audit Committee

An audit committee evaluates the company's performance against the committee charter, determining if the practices of the company are in compliance with its internal regulations.

Auditing Standards

The International Professional Practices Framework (IPPF) is a professional association which established standards for auditing. It recommends clarity, transparency and measurable accountability as standards for auditing a company's practices in comparison to its committee charter.

Publication of Charter

The committee charter should be available for public scrutiny or by the employees and management, and is often available on the entity's website.

About the Author

Scott Wolfenden began writing in 2006 on the subject of mental health. He has written a book on ADHD, children's mental health, education and parenting partially based on experience teaching in public schools. He blogs for Learning Things, an educational products website. He graduated from Thomas Edison State College with a Bachelor of Arts in social science and additional coursework in psychology.

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