An organization's IT department and internal IS audit function all report to the chief information...

The greatest concern with the IT department and internal IS audit function both reporting to the CIO is the potential compromise of IS audit independence. Auditor independence refers to the impartiality and objectivity of an auditor in conducting an audit, free from conflicts of interest and bias1. It is crucial forensuring the quality and reliability of financial reporting1. If the IS audit function reports to the CIO, who also oversees the IT department, it could create a conflict of interest that might compromise the impartiality and objectivity of the IS audit function.

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Auditor Independence - What is it, Rules, Importance, Examples