To encourage internal audit objectivity, which of the following is an appropriate policy the chief audit executive should establish?

Question

Sergio Escobar · Accepted Answer

Prior to hiring a new internal auditor, the chief audit executive must determine whether the auditor owns stock in the organization.

Sergio Escobar · Answer

Internal auditors should report their audit findings directly to the audit committee.

Sergio Escobar · Answer

To receive an outstanding performance rating, internal auditors are required to generate audit findings.

Sergio Escobar · Answer

Internal auditors are permitted to audit an entity managed by a close friend or relative, as long as they notify the chief audit executive.

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