Exam4Training

Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?
A . Appoint the chief audit executive as a member of the board.
B . Adopt written policies and procedures for the internal audit activity, approved by the board.
C . Ensure the chief audit executive reports administratively to the audit committee.
D . Establish the internal audit activity’s position within the organization in an audit charter

Answer: D

Explanation:

The internal audit charter is a formal document that defines the internal audit activity’s purpose, authority, and responsibility.

Establishing the internal audit activity’s position within the organization in an audit charter ensures independence and objectivity by clearly stating the internal audit’s role and its reporting lines.

The charter should be approved by the board and senior management to reinforce its authority and protect the internal audit activity from undue influence by management

Exit mobile version