To provide for the greatest degree of independence in performing internal audit activities, the internal audit function most likely should report to the:
A)vice-president-finance.
B)corporate controller.
C)audit committee of the board of directors.
D)corporate stockholders.

Question

Quizplus · Accepted Answer

Reporting to the audit committee of the board of directors ensures that the internal audit function has an independent reporting line that is not influenced by management or other stakeholders. This provides the greatest degree of independence in performing internal audit activities. Reporting to the vice-president-finance, corporate controller, or corporate stockholders poses a potential conflict of interest and may compromise the independence of the internal audit function.

To Provide for the Greatest Degree of Independence in Performing