Which of the following will best promote the independence of the internal auditing function?
A)Direct lines of communication between the audit committee and the director of internal auditing.
B)A quality control system within the internal auditing function designed to ensure that departmental objectives are met.
C)Direct reporting responsibilities to the entity's chief financial officer.
D)A review of the internal audit function by the external auditor.

Question

Quizplus · Accepted Answer

Direct lines of communication between the audit committee and the director of internal auditing would promote the independence of the internal auditing function by creating a direct reporting relationship between the auditor and the oversight body responsible for supervising the auditor’s work. This reduces the risk that management could unduly influence the auditor’s work or that the auditor would be hesitant to raise concerns to the board. Options B, C, and D would not promote the independence of the internal audit function as effectively as direct communication with the audit committee.

Which of the Following Will Best Promote the Independence of the Internal