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In which of the following situations would the organizational independence of an internal audit activity be impaired?
A.
The chief audit executive reports administratively to the CEO.
B.
Scope limitations are imposed on internal audits.
C.
The internal audit activity provides assurance services for an activity for which the engagement supervisor had responsibility within the previous year.
D.
The compensation committee of the board approves the remuneration of the chief audit executive.
ption C is the situation where the organizational independence of an internal audit activity would be impaired due to the potential conflict of interest arising from the engagement supervisor’s previous responsibility for the audited activity.
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