Question 21 Q: 21 Which of the following statements is true regarding organizational independence of the internal audit activity (IAA)? Options A: Reporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA. B: The benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor. C: Independence is impaired when the scope of the IAA is subject to changes required by senior management. D: Inadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee. Save Question Show Answer Discussion 3 Clear Discussion Most voted Newest No comments yet. Be the first to comment. Post Be respectful. No spam. Correct Answer: C
