Chief audit executive (CAE)
The person who leads the internal audit function.
The CAE manages internal audit in line with the charter and the Standards. They should report functionally to the board and administratively to senior management, and have direct, unrestricted access to the board.
On the exam
A functional reporting line to the board protects independence. Administrative reporting to the CEO or CFO is acceptable.
Related terms
- Internal audit charterThe document that sets internal audit’s mandate, authority and position.
- Independence and objectivityIndependence is about the function’s position; objectivity is about the auditor’s mindset.
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