To provide for the greatest degree of independence in performing internal audit functions,an internal auditor 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

The best choice is for the internal auditor to report to the audit committee of the board of directors as it provides the greatest degree of independence in performing internal audit functions. This allows the internal auditor to have direct access to the highest level of the organization and reduces the potential for undue interference or influence from management. Reporting to the Vice-President of Finance or Corporate Controller may create conflicts of interest as these individuals may have a vested interest in the results of the audit. Reporting to corporate stockholders is not practical as it would be difficult to coordinate and communicate effectively with a large and diverse group of shareholders.

To Provide for the Greatest Degree of Independence in Performing