Which of the following statements is true regarding organizational independence of the internal audit activity...

Reporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.

The benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor.

Independence is impaired when the scope of the IAA is subject to changes required by senior management.

Inadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.