where the internal audit manager reports functionally to a senior management official, is in accordance with the International Professional Practices Framework (IPPF) from the Institute of Internal Auditors (IIA), which states that internal audit functions should have a direct reporting line to the governing body or a senior management official in order to ensure objectivity and independence. This ensures that the internal audit function can provide accurate and unbiased information to senior management and the governing body.
Reference:
Institute of Internal Auditors. (2019). International Professional Practices Framework (IPPF). Institute of Internal Auditors. (Standards 2000.A2 and 2100.A1)