An organization's board of directors has decided that the internal audit activity must have greater access to different pans of the organization in order to perform their assurance work effectively…

Question

Options

• AInternal audit authority.
• BInternal audit reporting structure.
• CInternal audit independence and objectivity.
• DInternal audit interaction with the board

• A
  75% (24)
• B
  16% (5)
• C
  6% (2)
• D
  3% (1)

Explanation

Authority is the right of internal audit to access people, records, systems, and locations needed to perform its work. When the board expands internal audit's access to different parts of the organization, it is formally broadening the scope of that authority - which is defined in the internal audit charter and governed by the board.

Why the distractors are wrong:

• B (Reporting structure) concerns who internal audit reports to (e.g., the audit committee vs. management), not the breadth of access across the organization.
• C (Independence and objectivity) relates to freedom from bias or interference in judgment - not to physical or informational access rights.
• D (Interaction with the board) addresses the communication relationship between internal audit and the board, which is unchanged by this decision.

Memory tip: Think of authority as the internal audit "access pass." The board is issuing a bigger pass - that's authority. Independence is about mindset (staying unbiased); authority is about access (getting in the door). If the question mentions access, records, or scope of reach → think authority.

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