Which of the Following Best Ensures the Independence of the Internal

question 397

Multiple Choice

Which of the following best ensures the independence of the internal audit activity? 1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis. 2. The audit committee reviews the performance of the chief audit executive (CAE) periodically. 3. The internal audit charter requires the CAE to report functionally to the audit committee.

• A) 3 only
• B) 1 and 2 only
• C) 2 and 3 only
• D) 1, 2, and 3

---

Definitions:

Key People

Essential individuals within an organization or project who hold critical roles, expertise, or influence that significantly contribute to success.

Monitoring Task Accomplishments

The process of observing and recording the progress made on specific tasks within a project or operation.

Corrective Action

A process or an action taken to fix a detected problem or deviation from a set standard in an organization.

Uncertain Future

pertains to the unpredictability of events, developments, or outcomes in times ahead.