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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?
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A global manufacturing company has three regional offices. The chief audit executive (CAE) is concerned about the cost of an upcoming external quality assessment of the internal audit activity. The last external assessment was performed six years ago. Recently, the internal audit staff at one of the regional offices performed an internal assessment. To ensure conformance with the Standards, what is the most appropriate action for the CAE to take?
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Which of the following statements is true regarding risk management frameworks?

Question 755 - IIA-CIA-Part1 discussion

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Which of the following actions by an organization's board would potentially impair the internal audit activity's independence?

A.

Approving the appointment and compensation package of the chief audit executive (CAE).

Answers
A.

Approving the appointment and compensation package of the chief audit executive (CAE).

B.

Requiring that reports from the CAE are reviewed and approved first by senior management.

Answers
B.

Requiring that reports from the CAE are reviewed and approved first by senior management.

C.

Approving the internal audit activity's resources and audit plans annually.

Answers
C.

Approving the internal audit activity's resources and audit plans annually.

D.

Asking senior management and the CAE about the scope of the annual internal audit plan.

Answers
D.

Asking senior management and the CAE about the scope of the annual internal audit plan.

Suggested answer: B

Explanation:

This action by the organization's board would potentially impair the internal audit activity's independence, because it would create a reporting threat that could undermine the CAE's ability to communicate the results of internal audit engagements objectively and directly to the board or the audit committee2.The CAE should have unrestricted access to the board or the audit committee, and should not be subject to any undue influence or interference from senior management in reporting the internal audit findings, opinions, and recommendations3.

1: Standard 1110 -- Organizational Independence - The Institute of Internal Auditors or The IIA2: Independence and Objectivity - The Institute of Internal Auditors or The IIA3: Position paper: Independence and objectivity | Delivering internal audit | Resources | IIA

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asked 03/11/2024
Spandana Gangavaram
32 questions
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