Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:
A) controller.
B) board of directors.
C) external auditor.
D) treasurer.

Question

Quizplus · Accepted Answer

Reporting to the board of directors enhances the independence of internal auditors by providing them with direct access to the highest level of governance. This allows them to operate independently and objectively, without fear of retaliation or undue influence from management. Reporting to the controller, treasurer, or external auditor could create potential conflicts of interest or other issues that could compromise the independence of the internal audit department.

Independence of Internal Auditors Is Enhanced Appropriately by Having the Internal