Question

Discuss why it is crucial that internal auditors report solely to the uppermost level of management...

Discuss why it is crucial that internal auditors report solely to the uppermost level of management (either to the chief executive officer or the audit committee of the board of directors) and answer to no other group.

Homework Answers

Answer #1

It is crucial that internal auditors should report solely to the upper most level of management because it's scope of work is decided by these uppermost level of management such as CEO or the audit committee of board of directors . These are the persons who are stakeholders and responsible for all the activities of the organization.

Second reason is that interest audit are appointed by these uppermost level of management so they solely responsible to them for reporting.

CEO and audit committee are only responsible to look after the whole organization and manage all the activities and also to look after the Audit observation and take other correct measures as benefitted for the organization.

Internal auditor should not report to other group because other group is as reponsible for reporting to uppermost level of management about their work.

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