Final answer:
The party to which the internal auditor reports is not a measure of their competence. Internal auditor's competence is indicated by professional certification, the quality of internal audit documents and reports, and the supervision and review of their activities.
Step-by-step explanation:
Of the options listed, the party in the entity to which the internal auditor reports does not refer to an internal auditor's competence. Competence in internal auditing is demonstrated by professional certification, the quality of internal audit documents and reports, along with the effectiveness of supervision and review of internal audit activities. These elements all contribute to a well-functioning internal audit process by ensuring that internal auditors have the necessary skills and that their work meets high standards.
On the other hand, reporting lines (i.e., to whom the internal auditors report) are related to the governance and organizational structure rather than the personal competence of the internal auditors. Reporting lines can affect the independence and authority of the internal audit function but do not directly speak to the competence of the individual auditors.