What best describes the principle of independence in internal auditing?

The principle of independence in internal auditing refers to the auditor’s ability to conduct their work without undue influence or interference. This independence is crucial because it ensures that the auditors can provide objective assessments and communicate their findings honestly and candidly. When auditors are free from interference in communicating results, they can maintain their impartiality, which is fundamental to the credibility of the internal audit process.

Maintaining this independence allows auditors to make unbiased decisions based on their findings, fostering trust among stakeholders and ensuring that the internal audit function is effective and respected. This principle is essential for achieving the primary objectives of internal auditing, which include enhancing the organization's governance, risk management, and control processes.

Considering the other options, while on-site work, compliance with external regulations, and the idea of dictating outcomes are related aspects of the audit process, they do not encapsulate the core principle of independence. Independence specifically pertains to the auditor's freedom to report findings without external pressures or conflicts of interest, which is why the correct answer focuses on the auditors’ freedom in communication and reporting.