Which reporting relationship most clearly supports internal audit independence according to best practice and IIA guidance?
A. The chief audit executive should have a functional reporting relationship to the board or audit committee and an administrative reporting relationship to management for day-to-day operations.
B. The chief audit executive should report only to the CEO to ensure alignment with organizational strategy and eliminate board involvement.
C. The chief audit executive should be subordinate to the CFO to provide tighter financial oversight and control.
D. The chief audit executive should rotate reporting monthly among senior executives to encourage broad engagement across leadership.
The chief audit executive should have functional reporting to the board or audit committee and administrative reporting to management.