Which of the following enhances the independence of the internal audit activity?
A) The chief audit executive (CAE) approves the annual internal audit plan.
B) The CAE administratively reports to the board.
C) The audit committee approves the CAE's annual salary increase.
D) The chief executive officer approves the internal audit charter.

Question

Quizplus · Accepted Answer

The audit committee approving the CAE's annual salary increase enhances independence by reducing potential bias or influence from management.

Which of the Following Enhances the Independence of the Internal