In which of the following situations would an internal audit function most likely experience impairments...

Requiring senior management to review and preapprove the CAE’s communications with the board directly interferes with internal audit’s unrestricted access to the governing body and creates a significant impairment to organizational independence. The CAE must be able to communicate significant matters, audit results, resource concerns, scope limitations, and other relevant issues directly to the board without management censorship or modification. Meetings with the board chair, even when informal, generally support rather than undermine direct access. Participation as a non-voting participant in strategic or board discussions can help the CAE understand organizational risks without assuming decision-making responsibility. Regular meetings with the CEO are also consistent with an appropriate administrative relationship. Therefore, management control over communications to the board represents the clearest and most serious independence impairment.