Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 138

According to IIA guidance, which of the following conditions would enhance the independence of the internal audit activity?

Answer options

• A. The organizational culture rewards critical and objective thinking.
• B. The quality of work performed by the internal audit activity is periodically reviewed.
• C. The organization establishes effective governing body oversight.
• D. Audit assignments are rotated among internal audit staff.

Correct answer: C

Explanation

The correct answer is C because effective oversight from the governing body is crucial for maintaining the independence of the internal audit function. Options A, B, and D, while beneficial for the audit process, do not directly enhance the independence of the internal audit activity.