Which of the following would be considered the most significant problem for internal audit if the chief audit executive reported 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.

Question

Quizplus · Accepted Answer

If the chief audit executive reports to the controller, there is a risk that the controller may control the scope of audits and censor audit reports before they are sent to management and the audit committee. This poses a significant problem for internal audit as it undermines their independence and objectivity. The other options may also pose challenges for internal audit, but they are not as significant as the risk of compromised independence and objectivity.

Which of the Following Would Be Considered the Most Significant