Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 54

Which of the following would be considered the most significant problem for internal audit if the chief audit executive reports to the controller?
A) The controller would amend the audit schedule so more audit time was spent on accounting issues.
B) The controller may have no training as an internal auditor.
C) During times when the budget needs to be cut, internal audit would likely be the first to lose funding.
D) The controller can control the scope of audits and censor audit reports before being sent to management and the audit committee.