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Question 136 - IIA-CIA-Part2 discussion

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Which of the following situations is most critical for the chief audit executive to report to the board?

A.
The chief audit executive disagreed with the business unit manager's initial decision to accept a particular risk Management ultimately agreed to address the risk only after discussing the issue with senior management.
Answers
A.
The chief audit executive disagreed with the business unit manager's initial decision to accept a particular risk Management ultimately agreed to address the risk only after discussing the issue with senior management.
B.
The internal audit activity was restructured, which resulted in a significant change in responsibilities among audit managers and supervisors for some audits
Answers
B.
The internal audit activity was restructured, which resulted in a significant change in responsibilities among audit managers and supervisors for some audits
C.
A staff internal auditor had difficulties completing a portion of the audit because management of the area under review was unwilling to cooperate and provide information timely.
Answers
C.
A staff internal auditor had difficulties completing a portion of the audit because management of the area under review was unwilling to cooperate and provide information timely.
D.
The resignation of an internal audit manager during the year caused the chief audit executive to defer a number of audit engagements to the following year.
Answers
D.
The resignation of an internal audit manager during the year caused the chief audit executive to defer a number of audit engagements to the following year.
Suggested answer: A

Explanation:

The most critical situation for the chief audit executive (CAE) to report to the board is the disagreement with the business unit manager's initial decision to accept a particular risk, which was only addressed after discussion with senior management. This situation is critical because it involves a risk that was initially accepted without proper mitigation, which could have significant implications for the organization. Reporting this to the board ensures that they are aware of potential disagreements regarding risk acceptance and management's approach to risk mitigation.

IIA Standards: 2060 - Reporting to Senior Management and the Board

IIA Practice Guide: Reporting to the Board and Senior Management

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asked 18/09/2024
Pay Ametovski
38 questions
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