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Charter CaseColser Ltd.You have just assumed your duties as chief audit executive of Colser Ltd., a large Canadian manufacturing firm. During a meeting with the president of the company, William Chong, you are informed that there is no official mandate governing the function of management auditing in the company. William is considering establishing such a mandate, making it a priority to ensure the effectiveness of your service. Consequently, he asks you to prepare a brief memo for the audit committee, listing the reasons why sucha mandate is important and identifying and describing its major components.Required:Prepare the memo requested by William Chong, president of Colser Ltd.Charter Case Suggested SolutionColser Ltd.Answers should be in the form of a document identifying the reasons why it is important to establish a mandate or charter for the internal audit function and the major elements that this mandate should include.MEMORANDUMDATE:October 10, 20X1TO:William Chong, PresidentFROM:Chief Audit ExecutiveRE:Internal Audit MandateAs requested, I have prepared the following outline identifying the importance of an internal audit mandate and the major components it should include. Please review this so that we can discuss the issues prior to circulating to the audit committee.