George Lem works for the San Antonio Buildings Department as an internal government auditor.
He and his boss, Theresa Rose, report to the department’s governing body.
A statute gives Theresa sole authority over the selection, retention, advancement, and dismissal of her department’s staff.
Would George and Theresa be considered organizationally independent of the Buildings Department?
A.) Yes, if the internal audit function also follows guidelines put forth by the Institute of Internal Auditors.
B.) Yes, if the internal audit function meets all of the safeguards outlined in the Yellow Book.
C.) No, because internal government auditors can never be considered independent of their employers.
D.) No, because the internal audit function is so poorly staffed.
The answer is Yes, if the internal audit function meets all of the safeguards outlined in the Yellow Book.