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A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
Which of the following situations is most likely to threaten the independence of the internal audit activity?
Which of the following actions by an organization's board would potentially impair the internal audit activity's independence?
Which of the following actions does a competency assessment tool help the chief audit executive perform?
Which of the following statements is true regarding risk management frameworks?
Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?
Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?
How can an Internal audit activity contribute to Its organization's risk assessment process?

Question 637 - IIA-CIA-Part1 discussion

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The chief audit executive (CAE) annually develops a budget and resource plan and submits it to the board for approval. This action best fulfills which of the following responsibilities of the CAE?

A.

The responsibility to maintain organizational independence.

Answers
A.

The responsibility to maintain organizational independence.

B.

The responsibility to perform engagements with due professional care.

Answers
B.

The responsibility to perform engagements with due professional care.

C.

The responsibility to communicate corrective action plans to the board.

Answers
C.

The responsibility to communicate corrective action plans to the board.

D.

The responsibility to define the purpose of the internal audit activity.

Answers
D.

The responsibility to define the purpose of the internal audit activity.

Suggested answer: A

Explanation:

The responsibility of the chief audit executive (CAE) to maintain organizational independence is fulfilled by developing and submitting an annual budget and resource plan to the board for approval. By doing so, the CAE ensures that the internal audit activity has the necessary resources to operate effectively without undue influence from management. This process upholds the independence and objectivity of the internal audit function, as it allows the board to oversee and approve the resources needed for the audit activity, thus preventing potential conflicts of interest and ensuring the audit function remains free from managerial interference.

Reference:

The IIA's International Standards for the Professional Practice of Internal Auditing (Standards) - Standard 1110: Organizational Independence.

The IIA's Practice Guide on Maintaining Internal Audit Independence.

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asked 03/11/2024
Matteo Di Pomponio
41 questions
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