To promote operational efficiency, the internal audit department would ideally report to:
A)line management.
B)PCAOB.
C)Chief Accounting Officer.
D)audit committee.

Question

Quizplus · Accepted Answer

The internal audit department provides an independent and objective evaluation of a company's internal controls and risk management practices. To promote impartiality and avoid management influence on their work, the internal audit department should report to the audit committee, which is a subgroup of the board of directors. The audit committee oversees the internal audit function, provides feedback and guidance, and ensures that the internal auditors have the resources and authority needed to perform their job effectively. Additionally, by reporting directly to the audit committee, the internal audit department can communicate its findings and recommendations directly to the highest level of governance, which can enhance accountability and transparency.

To Promote Operational Efficiency, the Internal Audit Department Would Ideally