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To encourage internal audit objectivity, which of the following is an appropriate policy the chief...

To encourage internal audit objectivity, which of the following is an appropriate policy the chief audit executive should establish?

A.

Internal auditors should report their audit findings directly to the audit committee.

B.

To receive an outstanding performance rating, internal auditors are required to generate audit findings.

C.

Prior to hiring a new internal auditor, the chief audit executive must determine whether the auditor owns stock in the organization.

D.

Internal auditors are permitted to audit an entity managed by a close friend or relative, as long as they notify the chief audit executive.

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