A chief audit executive (CAE) has just joined an organization with an existing internal audit activity.
Based on her review of the current organizational structure, the CAE determines that the internal audit activity lacks adequate independence. Which of the following actions is the CAE's best step to take next to move the internal audit activity toward organizational independence?

Question

A chief audit executive (CAE) has just joined an organization with an existing internal audit activity.

Based on her review of the current organizational structure, the CAE determines that the internal audit activity lacks adequate independence. Which of the following actions is the CAE's best step to take next to move the internal audit activity toward organizational independence?

David Miller · Accepted Answer

Request that the board restructure the reporting line of the internal audit activity to ensure the CAE has unrestricted access to the board.

David Miller · Answer

Ensure the limitations are disclosed through communication with the board and senior management, so that the internal audit activity can continue operating under the same organizational structure.

David Miller · Answer

Rotate internal audit assignments among members of the internal audit activity to minimize the effects of the current structure.

David Miller · Answer

Train internal auditors about organizational independence and have them sign an acknowledgment of understanding.

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