Reference no: EM131155700

Multiple Choice Questions

The following questions deal with independence of auditors. Choose the best response.

a. The operational auditor's independence is most likely to be compromised when the internal audit department is responsible directly to the 
(1) Vice president of finance. 
(2) President. 
(3) Controller.
(4) Executive vice president.
(5) Audit committee of the board of directors.

b. The independence of the internal audit department will most likely be assured if it reports to the 
(1) President. 
(2) Controller. 
(3) Treasurer.
(4) Audit committee of the board of directors.
(5) Vice president of finance.

c. You have been asked to assess the organizational independence of an internal audit activity. You should consider all of the following factors except 
(1) Functional reporting to the board and administrative reporting to the chief executive officer.
(2) The criteria of education and experience considered necessary when filling vacant positions on the internal audit staff.
(3) The degree to which internal auditors assume operational responsibilities.
(4) A limitation on the scope of objectives for the engagements included in the review.