To operate effectively, internal auditors must be:
A) contracted by the organisation subject to audit.
B) independent of the line functions within an organisation.
C) members of either the Institute of Chartered Accountants in Australia or CPA Australia.
D) registered with ASIC and meet minimum professional development requirements.

Question

Quizplus · Accepted Answer

Internal auditors must be independent of the line functions within an organisation. They should report directly to the audit committee or a senior management position outside of the areas they are auditing to ensure their objectivity and impartiality. Being independent helps them to provide unbiased and objective recommendations to improve the organization's operations, risk management, and internal control processes. The other options are incorrect because they either relate to the contractor or regulatory requirements for registration and membership but do not concern the fundamental attribute of internal auditors' independence.

To Operate Effectively, Internal Auditors Must Be