From the Homework Exercises following Chapter 8 of your textbook, discuss the questions found in Discusion Questions #1 on page 8-39. Your answer and your responses to other students’ answers are to be posted by June 26, 2016.

Question: Discuss why the internal audit function’s organization status, competence, and objectivity are particularly important when considering fraud by senior management. why might a CAE reporting directly to the chief financial officer, CEO, general counsel, or controller be more problematic that reporting to the audit committee (or equivalent) ?

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