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Question 98

In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:

Access to and frequency of communications with the board of directors or its audit committee.

The criteria of education and experience considered necessary when filling vacant positions on the audit staff.

The degree to which auditors assume operating responsibilities.

The scope and depth of engagement objectives for the audit engagements included in the review.

Correct Answer: B

When assessing the independence of the internal audit activity, factors to consider should directly relate to potential influences on the audit team's objective functioning and reporting lines. Education and experience criteria for staffing, while important for overall competence and performance, do not directly affect the independence of the internal audit activity. Independence is more concerned with structural relationships and reporting lines, like access and communications with the board (option A), the degree of operating responsibilities assumed (option C), and the scope of engagement objectives (option D). Hence, option B is the correct answer.

Discussion

ciaprepper

Why is the answer not C?

John1237

The degree to which auditors assume operating responsibilities relates to their objectivity and the independence of the IAA. Individual objectivity and independence must be taken into account in the evaluation.