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Which of the following would best preserve the organizational independence of the internal audit activity?

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Which of the following would best preserve the organizational independence of the internal audit activity?

A.

The internal audit charter is approved by the chief audit executive (CAE).

B.

The CAE reports functionally to the CEO.

C.

The CAE's internal audit plan is endorsed by the board.

D.

The chief financial officer determines the appointment of the CAE.

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