DQ2 - Is your audit committee friend or faux? Briefly explain the role of an internal audit and how it differs from an external audit. List the issues in the following scenario and needed corrections. Competent and Independent audit committees improve the control environment (Section 301 of SOX). However, Bumbling Bernie is an unrelated field and asked to chair an audit committee. There is a massive amount of information presented at Infrequent meetings to the Committee. The internal audit department reports to the CFO instead of the CEO. The CFO controls the agenda, all interaction with internal and external auditors, moves responsibility for many items to himself, and the Committee rubber stamps everything. The company claims to meet the requirement for an independent committee. Cite the professional sources from the IIA, ACFE, or SOX that show these as not best practices. The Institute of Internal Audit Professional Practices Framework is a great guide.