Crucial to the establishment of an IAD is the development of its written charter. The charter states the purpose, authority, and responsibbility of the internal audit activity and establishes what senior management and the board of directors expect from the CAE and the internal audit staff. The Institute of Internal Auditors has developed International Standards that address the characteristics of organizations and parties performing internal audit activities. The first attribute standard states, "The purpose, authority, and responsibility of the internal audit activity should be formally defined in a charter, consistent with the Standards, and approved by the board.