IIA Exam IIA-CHAL-QISA Topic 1 Question 23 Discussion

Actual exam question for IIA's IIA-CHAL-QISA exam

Question #: 23
Topic #: 1

Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

AAppoint the chief audit executive as a member of the board.

BAdopt written policies and procedures for the internal audit activity, approved by the board.

CEnsure the chief audit executive reports administratively to the audit committee.

DEstablish the internal audit activity's position within the organization in an audit charter

Show Suggested Answer

Suggested Answer: C

ISO 31000 Context: ISO 31000 provides guidelines on risk management, emphasizing the importance of understanding the external context.

External Context: This includes external factors such as regulatory and competitive environments that can impact the organization's risk profile.

Regulatory Environment: Understanding regulations helps the organization ensure compliance and avoid legal risks.

Competitive Environment: Analyzing the competitive environment allows the organization to anticipate market changes and manage competitive risks.

ISO 31000 Risk Management Guidelines.

by Jess at Mar 08, 2025, 01:14 PM

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Peter

2 months ago

Option B sounds good, but it's not the most appropriate. Written policies are important, but they don't guarantee freedom from undue influence like reporting to the audit committee does.

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Rosendo

1 months ago

C) Ensure the chief audit executive reports administratively to the audit committee.

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Valentin

1 months ago

C) Ensure the chief audit executive reports administratively to the audit committee.

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Sanda

2 months ago

B) Adopt written policies and procedures for the internal audit activity, approved by the board.

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Thersa

2 months ago

B) Adopt written policies and procedures for the internal audit activity, approved by the board.

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Jarod

2 months ago

A) Appoint the chief audit executive as a member of the board.

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Alexis

2 months ago

A) Appoint the chief audit executive as a member of the board.

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Micah

3 months ago

Haha, option A is a joke! Appointing the chief audit executive to the board would just put them under management's thumb. Not a chance!

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Hyun

1 months ago

Option D seems like a solid choice too. Establishing the internal audit activity's position in an audit charter would provide clear guidelines.

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Mitsue

2 months ago

I agree, option C is also a good way to ensure the chief audit executive reports directly to the audit committee.

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Sol

2 months ago

Option B sounds like the best choice. Having written policies approved by the board would help maintain independence.

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Veronica

3 months ago

I think Option D is the best answer. An audit charter can clearly establish the internal audit activity's position and authority within the organization.

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Nickolas

2 months ago

I think ensuring the chief audit executive reports to the audit committee is crucial for independence.

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Mertie

2 months ago

True, having written policies approved by the board can also help prevent undue influence.

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Rupert

2 months ago

But appointing the chief audit executive as a member of the board could also ensure independence.

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Mira

3 months ago

I agree, having an audit charter in place can help define the internal audit activity's role.

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Tonette

3 months ago

Why do you think option C is better?

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Ryan

3 months ago

I disagree, I believe option C is more effective.

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Lyndia

3 months ago

Option C is the most appropriate choice. The chief audit executive should report administratively to the audit committee to ensure independence from management influence.

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