Internal Audit: Is your audit committee friend or faux? Briefly explain the role of internal audit and how it differs from 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. Financial information presented is chosen by the CFO. The company incurs an operating loss of $300M The company claims to meet the requirement for an independent committee