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An assessment of performance management practices and the establishment of key performance indicators directly relates to organizational governance, as these elements are integral in defining and measuring how organizational goals are achieved, which is a key aspect of governance. Internal auditors assessing these areas contribute significantly to evaluating and improving the governance framework within the organization.

IIA Practice Advisory on Governance

The personal quality of integrity is most likely the foundation for the relationship where senior management relies on the professional judgment of an internal auditor. Integrity ensures that the auditor conducts her work ethically and objectively, provides truthful and accurate assessments, and adheres to both the standards of the profession and the organization's policies. This quality builds trust and reliability in the auditor's findings and recommendations.

The IIA's Code of Ethics and International Standards for the Professional Practice of Internal Auditing.

According to IIA guidance, the chief audit executive (CAE) must obtain competent advice and assistance if the internal audit activity lacks the knowledge, skills, or other competencies needed to complete the audit engagement. This ensures that the internal audit activity can effectively carry out its responsibilities by supplementing its capabilities where necessary to maintain quality and effectiveness.

IIA Standard 1210 - Proficiency

Organizational independence for the internal audit activity is best evidenced when the chief audit executive (CAE) reports functionally and administratively to the CEO. Functional reporting to the CEO or equivalent position ensures that the internal audit activity has direct access to top management, which supports its independence and the ability to carry out audits without undue influence from management. Administrative reporting to the CEO also helps align the internal audit function’s objectives with those of top management, reinforcing its autonomy and authority within the organization.

IIA's International Standards for the Professional Practice of Internal Auditing regarding organizational independence.