Reasonable assurance is a concept that relies heavily on internal control, but Amber Johnson, the chief compliance officer of the Holly Company, has doubts about the effectiveness of reasonable assurance. She has demanded complete compliance with all processes related to the compilation of the financial statements. She said, "As long as I am the compliance officer here, we will have a perfectly monitored system that absolutely prevents fraud or misstatements in our financial statements." Derek Lodge, the controller, disagrees with Amber Johnson. He feels that requiring more than reasonable assurance costs too much and is impossible to implement.

Suppose the internal auditor reports to the CEO. Does that complicate the goal of preventing all financial statement fraud or misstatements? If so why?