To maximize its effectiveness, to whom should the internal audit department report?
A) chief financial officer
B) board of directors
C) external auditor
D) shareholders

Question

Quizplus · Accepted Answer

The internal audit department should report to the board of directors because the board is responsible for the overall management of the organization and its strategic direction. Reporting directly to the board ensures the objectivity and independence of the internal audit function, which is important for effective risk assessment and internal control evaluation. Reporting to other parties such as the CFO, external auditor, or shareholders may compromise the objectivity and independence of the internal audit function.

To Maximize Its Effectiveness, to Whom Should the Internal Audit