Question

The chief audit executive is best defined as the

A. Inspector general.
B. Person responsible for the internal audit
function.
C. Outside provider of internal audit services.
D. Person responsible for overseeing the contract
with the outside provider of internal audit
services.

Answer 1

The chief audit executive is the person responsible for an organization's internal audit function, providing crucial oversight to ensure proper financial reporting and operations.

Step-by-step explanation:

The chief audit executive is best defined as the person responsible for the internal audit function within an organization. This role involves overseeing the internal auditing processes, ensuring that the company adheres to financial reporting and control practices, and providing objective assurance and consulting services designed to add value and improve an organization's operations. Contrary to other positions like inspector general or external audit service providers, the chief audit executive is an internal role, often reporting to the highest levels within an organization, such as the board of directors or the audit committee.

It's integral to corporate governance and is one of the key roles that complement the work of other oversight bodies such as the Government Accountability Office (GAO), the auditor the company hires, and the board of directors which is elected by the shareholders. Each entity plays a crucial role in ensuring that operations are conducted with sound management practices and transparency, contributing to the overarching structure of corporate governance.