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)chief executive officer.
C)audit committee.
D)shareholders.

Question

Quizplus · Accepted Answer

The audit committee, which is a subcommittee of the board of directors, is responsible for overseeing the internal audit function, which includes hiring, firing, compensation, and providing appropriate resources to the internal audit department. Reporting directly to the audit committee can ensure the independence of the internal auditor from management and the board of directors, which is essential for conducting objective and unbiased audits. Reporting to the chief financial officer, chief executive officer, or shareholders can compromise the independence and objectivity of the internal auditor.

To Provide for the Greatest Degree of Independence in Performing