Many internal audit departments report to a level of authority below either the board of directors or the chief executive officer. But these cases raise some doubt about the internal auditors' objectivity and independence. The organization chart below is an example.

Required: 

Cite the advantages and disadvantages to the internal audit department of having the responsibilities depicted in the chart.

Transcribed Image Text:

STOCKHOLDERS BOARD OF DIRECTORS CHAIRMAN 1 PRESIDENT AUDIT COMMITTEE EXTERNAL AUDITOR V.P. FINANCE V.P. V.P. OPERATIONS SALES V.P. V.P. R & D PERSONNEL CONTROLLER INTERNAL AUDITOR 1