Two directors of internal auditing from two different companies, Paul Eberhardt and Trevor Smith, were seated next to each other at an Institute dinner meeting.
Paul said, "I missed you last month, Trevor, what happened?"
"I was presenting a report to the board of directors of the company," said Trevor. "I just couldn't make The Institute meeting."
"Isn't a report at that level kind of unusual? " asked Paul.
"Not at all. That's where I report — to the auditing committee of the board of directors. And when they meet, I salute and say my piece. Where do you report, Paul?"
"To the vice president-controller.
And I don't have to wait for a formal meeting. I can go up to him any time I get an appointment — which is just about any time I want. I like that better."
"Not me, " said Trevor. "I've got a mandate from the top — there is no higher — and that's the way I like it."
"But you don't get the personal rapport and close working relationship that you have when you report to a single individual."
"True. But I've got a lot more clout," explained Trevor.
"I've got all the clout I need. It's in my statement of functions and responsibilities.
And besides, I'd rather rely on hard facts and gentle persuasion than on clout, " stated Paul.
"That's what you think now. But when the chips are down and you're getting into some wild management services audit in which you're even questioning the president's policies and procedures, a little clout from the board doesn't hurt, " Trevor replied.
Required: 

Who do you think is right? Why?