Which of the following statements is true regarding organizational independence of the internal audit activity (IAA)?

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mckeon mackey · Accepted Answer

Independence is impaired when the scope of the IAA is subject to changes required by senior management.

mckeon mackey · Answer

Reporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.

mckeon mackey · Answer

The benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor.

mckeon mackey · Answer

Inadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.

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