The following questions deal with independence of auditors who do operational auditing. Choose the best response.

a. The operational auditor's independence is most likely to be compromised when the internal audit department is responsible directly to the

(1) president.

(2) vice-president of finance.

(3) controller.

(4) audit committee of the board of directors.

b. The independence of the internal audit department will most likely be assured if it reports to the

(1)president.

(2) vice-president of finance.

(3) treasurer.

(4) audit committee of the board of directors.

c. Which of the following may compromise the independence of an internal auditor?

(1) Performing an audit where the auditor recently had operating responsibilities

(2) Failing to review the auditor's report with the auditee prior to distribution

(3) Reviewing automated systems prior to implementation

(4) Following up on corrective action in response to audit findings

d. Internal auditors should be objective in performing audits. Which of the following situations violates standards concerning objectivity?

(1) The auditor reviews a department in which the auditor has the responsibility for cosigning cheques.
(2) The auditor who reviews accounts receivable worked in that department for three months as a trainee two years ago.
(3) The auditor reviews a department that continues to use procedures recommended by that auditor when the department was established.
(4) The auditor reviews the same department for two years in succession.