According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the Internal audit activity^
A.
CAE reviews and approves the annual audit plan.
B.
CAE meets privately with the CEO at least annually
C.
CAE meets privately with the board at least annually.
D.
CAE reports to the board regarding audit staff performance evaluation and compensation.
According to IIA guidance, one of the best practices for enhancing the organizational independence of the internal audit activity is for the chief audit executive (CAE) to meet privately with the board at least annually. This practice reinforces the independence of the internal audit function by ensuring direct and unfiltered communication with the board.
Direct Communication: Private meetings with the board allow the CAE to discuss audit findings, concerns, and other important matters without management ' s influence, thereby preserving the objectivity and independence of the internal audit function.
Board Support: This direct line of communication helps to secure the board’s support for the internal audit activity, which is critical for its effective functioning.
Independence: Such meetings underscore the independence of the internal audit activity from management, reinforcing its role in providing unbiased assurance.
[References:, "IIA Standards for the Professional Practice of Internal Auditing," which recommends private meetings between the CAE and the board to support independence ., , , ]
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