Natalya Rovinescu, the external auditor at Nautilus Minerals, was trying to determine whether she could rely on the relevant work of the internal audit department. She would place
Most confidence if the internal auditor reported to the
A) Treasurer.
B) President.
C) Board of Directors.
D) Chief Financial Officer.

Question

Natalya Rovinescu, the external auditor at Nautilus Minerals, was trying to determine whether she could rely on the relevant work of the internal audit department. She would place
Most confidence if the internal auditor reported to the
A) Treasurer.
B) President. 
C) Board of Directors.
D) Chief Financial Officer.

Quizplus · Accepted Answer

The Board of Directors is responsible for providing oversight of the company's operations, including the internal audit function. If the internal auditor reports directly to the Board of Directors, there is greater independence and objectivity in the internal audit process, which increases the likelihood of reliable and accurate results. Reporting to the Treasurer, President, or CFO may create conflicts of interest and reduce the effectiveness of the internal audit function.

Natalya Rovinescu, the External Auditor at Nautilus Minerals, Was Trying