Organizational Independence
To perform their role effectively, internal auditors require organizational independence from management, to enable unrestricted evaluation of management activities and personnel. Although internal auditors are part of company management and paid by the company, the primary customer of internal audit activity is the entity charged with oversight of management's activities. This is typically the Audit Committee, a sub-committee of the Board of Directors. To provide independence, most Chief Audit Executives report to the Chairperson of the Audit Committee and can only be replaced with the concurrence of that individual.
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Famous quotes containing the word independence:
“The subject of the novel is reality liberated from soul. The reader in complete independence presented with a structured process: let him evaluate it, not the author. The façade of the novel cannot be other than stone or steel, flashing electrically or dark, but silent.”
—Alfred Döblin (1878–1957)