To operate effectively, internal auditors must be:
A) registered with ASIC and meet minimum professional development requirements.
B) independent of the line functions within an organisation.
C) contracted by the organisation subject to audit.
D) members of either the Institute of Chartered Accountants in Australia or CPA Australia.

Question

Quizplus · Accepted Answer

Internal auditors must be independent of the line functions within an organisation to ensure objectivity and impartiality in their work. This allows them to provide unbiased assessments of the organisation's systems and controls. While certain professional qualifications and development requirements can enhance an internal auditor's skills and knowledge, they are not a necessary requirement for effective operation. Contracting the internal audit function is also not a prerequisite for effective operation as many organisations have in-house internal audit departments.

To Operate Effectively, Internal Auditors Must Be