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Question 249

To encourage internal audit objectivity, which of the following is an appropriate policy the chief audit executive should establish?

Internal auditors should report their audit findings directly to the audit committee.

To receive an outstanding performance rating, internal auditors are required to generate audit findings.

Prior to hiring a new internal auditor, the chief audit executive must determine whether the auditor owns stock in the organization.

Internal auditors are permitted to audit an entity managed by a close friend or relative, as long as they notify the chief audit executive.

Correct Answer: A

To encourage internal audit objectivity, internal auditors should report their audit findings directly to the audit committee. This policy ensures that auditors can present their findings without undue influence from other management levels, thereby maintaining the integrity of the audit process. Requiring auditors to report directly to the audit committee helps preserve their independence and strengthens the objectivity of the audit findings.

Discussion

abdullah01Option: C

C is correct