Internal auditor independence would not be impaired if the auditor:
A) made management decisions relating to financial activities.
B) assumes operating responsibilities.
C) reports directly to the controller.
D) reports directly to the treasurer.
E) makes recommendations based on audit findings.

Question

Quizplus · Accepted Answer

Internal auditors maintain their independence by providing recommendations rather than making management decisions or assuming operating responsibilities. Reporting directly to a controller or treasurer could impair independence due to potential conflicts of interest. Making recommendations based on audit findings is a core function of internal auditors that does not impair their independence.

Internal Auditor Independence Would Not Be Impaired If the Auditor