To provide for the greatest degree of independence in performing internal auditing functions, an internal auditor most likely should report to the:
A) chief financial officer.
B) corporate controller.
C) audit committee.
D) shareholders.

Question

Quizplus · Accepted Answer

Reporting directly to the audit committee is the best way to maintain independence and objectivity in internal auditing. This allows the auditor to provide unbiased and truthful assessments of the organization's systems and controls without fear of retribution or pressure from management or executives. Reporting to the CFO or corporate controller, who may have a vested interest in presenting a positive image of the organization, could compromise the auditor's independence. Reporting to shareholders is not practical as it would create logistical and communication challenges.

To Provide for the Greatest Degree of Independence in Performing