Q: 10
Which of the following offers the best evidence that the internal audit activity has achieved
organizational independence?
Options
Discussion
Makes sense B is correct. Functional and admin reporting to the CEO shows true independence for internal audit.
Nah, I don't think C proves independence in practice-B is the best evidence here.
Its B, since direct reporting (functionally and administratively) to the CEO is practical evidence of independence. The charter or mission statement is important but doesn't prove it's actually happening. I think B shows it best, unless I'm missing something.
B
It’s B for best evidence. Internal audit reporting directly (functionally and administratively) to the CEO means fewer conflicts of interest and stronger independence in practice, not just on paper. Even with a good charter (C) or mission statement (D), if reporting lines aren’t independent, audit could still face management pressure. Pretty sure B is what I’ve seen in similar exam scenarios, but open to counterpoints if anyone disagrees given a tricky org structure.
Option B, saw a similar question on a practice test.
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