A. The internal audit department must have independence and objectivity and should not have any direct relationships with the various departments it will be auditing. However, objectivity is not impaired if the internal audit recommends standards of control for systems or reviews procedures before implementation. Evaluation of the adequacy and effectiveness of the control system is, in fact, one of the responsibilities of the internal audit function. There is no need for the director of internal auditing to avoid involvement in reviewing policies and procedures before they are implemented.
B. The internal audit department must have independence and objectivity and should not have any direct relationships with the various departments it will be auditing. However, objectivity is not impaired if the internal audit recommends standards of control for systems or reviews procedures before implementation. Evaluation of the adequacy and effectiveness of the control system is, in fact, one of the responsibilities of the internal audit function.
C. Suggesting that a copy of the travel planning form should be sent to the internal audit department is inappropriate because there is no reason for the audit department to receive a copy of the travel planning form.
D. The internal audit department must have independence and objectivity and should not have any direct relationships with the various departments it will be auditing. Ensuring that examples of all signatures are on file to use during travel reimbursement procedures is a procedure that may be used in a future audit of the travel approval function; it is not appropriate for the director of internal auditing to get involved in this operational responsibility now.
