Which of the following situations undermines the independence of the internal audit activity?

Question

Gage Adams · Accepted Answer

The internal audit activity is responsible for the company's risk management function, and its head manager reports to the chief audit executive.

Gage Adams · Answer

A senior member of the internal audit activity once worked in the corporate finance department.

Gage Adams · Answer

The organization's CEO reviews the internal audit activity's annual budget per the organization's policies and procedures.

Gage Adams · Answer

The internal audit activity often uses management's risk profile to build its own risk profile for annual planning.

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