In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:
In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:
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.
Why is the answer not C?
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.