To provide for the greatest degree of independence in performing internal auditing functions,an internal auditor most likely should report to the:
A)Financial vice-president.
B)Corporate controller.
C)Audit committee.
D)Corporate stockholders.

Question

Quizplus · Accepted Answer

Reporting to the audit committee provides the greatest degree of independence as the audit committee oversees the internal audit function and ensures that it operates independently and without any undue influence from management. Reporting to the financial vice-president or corporate controller may lead to conflicts of interest or pressure to manipulate audit findings. Reporting to the corporate stockholders is impractical as they are usually not involved in the day-to-day operations of the company.

To Provide for the Greatest Degree of Independence in Performing