IIA-CHAL-QISA Exam - Topic 2 Question 22 Discussion

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

Question #: 22
Topic #: 2

According to IIA guidance, which of the following most appropriately justifies the CEO's decision that the internal audit activity shall be responsible for risk management and Investigation at multinational organization?

AThe recommendation of the parent office external auditors.

BThe provisions of the internal audit charter.

CThe authority of the CEO.

DThe level of proficiency of the chief audit executive

Show Suggested Answer

Suggested Answer: C

Professional Responsibility: Internal auditors are expected to demonstrate their commitment to professional standards and ethics.

Code of Ethics: The IIA's Code of Ethics outlines principles that internal auditors must follow, including integrity, objectivity, confidentiality, and competency.

Annual Declaration: Signing an annual declaration reinforces the auditor's commitment to these principles and ensures ongoing adherence to the professional standards.

Demonstration of Due Care: By signing this declaration, auditors formally acknowledge their responsibility to uphold ethical standards, which is a demonstration of due professional care.

The IIA's Code of Ethics.

The IIA's International Standards for the Professional Practice of Internal Auditing.

by Georgiann at Feb 10, 2025, 05:19 PM

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Nikita

3 months ago

D seems a bit weak, proficiency alone shouldn't justify such a big responsibility.

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Jess

4 months ago

A is a solid choice too, external auditors often have good insights.

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Elenora

4 months ago

Wait, are we really saying the CEO can just decide this? Sounds sketchy.

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Wilda

4 months ago

I disagree, C makes more sense since the CEO has the final say.

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Jolanda

4 months ago

I think it's definitely B, the internal audit charter covers this stuff.

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Reiko

4 months ago

The proficiency of the chief audit executive seems relevant, but I wonder if it justifies the entire responsibility shift. Maybe option D is too narrow?

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Candida

5 months ago

I think we had a practice question about the roles of external auditors and their influence, but I can't recall if that directly applies here.

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Kenneth

5 months ago

I'm not entirely sure, but I feel like the CEO's authority could play a big role in this decision, which makes me lean towards option C.

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Douglass

5 months ago

I remember discussing the importance of the internal audit charter in class, so I think option B might be the right choice.

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Stefany

5 months ago

This question seems straightforward, but I want to make sure I'm not missing anything. I think the authority of the CEO is the most appropriate justification, since the CEO would have the ultimate decision-making power on the internal audit activity's responsibilities. But I'll double-check the IIA guidance just to be sure.

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Juliana

5 months ago

I'm not too confident about this one. There are a few different factors mentioned that could justify the CEO's decision, and I'm not sure which one the IIA guidance would consider the most appropriate. I might need to do some quick research on the IIA's recommendations before answering.

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Janae

5 months ago

Okay, I think I've got this. The IIA guidance is the key here, so I'm going to focus on that. Based on my understanding, the provisions of the internal audit charter would be the most appropriate justification, since that would outline the internal audit activity's responsibilities. I'll go with option B.

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Bronwyn

5 months ago

Hmm, I'm a bit confused by this one. The options seem to be focused on different factors that could justify the CEO's decision, but I'm not sure which one is the "most appropriate" based on the IIA guidance. I'll need to re-read the question carefully.

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Iraida

5 months ago

This question seems straightforward - it's asking about the justification for the CEO's decision on the internal audit activity's responsibilities. I think the key is to focus on the IIA guidance mentioned in the question.

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Evangelina

10 months ago

The CEO must have a strong reason for this decision. Option C (the CEO's authority) is tempting, but Option B seems like the better choice. Although, if I were the CEO, I'd probably just say 'Because I said so!' and call it a day.

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Cary

10 months ago

Hmm, the external auditors' recommendation (Option A) could also be a valid justification. But the internal audit charter (Option B) is probably the most appropriate one.

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Hyman

9 months ago

The level of proficiency of the chief audit executive is also important in this decision.

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Tamar

9 months ago

I agree, the CEO's decision should align with the provisions of the internal audit charter.

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Daniela

9 months ago

The level of proficiency of the chief audit executive could also play a role in this decision.

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Lennie

9 months ago

I think the internal audit charter is the most appropriate justification.

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Micah

10 months ago

I agree, the CEO's decision should align with the provisions of the internal audit charter.

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Julie

10 months ago

I think the internal audit charter is the most appropriate justification.

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Elsa

10 months ago

While the CEO's authority is important, I think the provisions of the internal audit charter (Option B) provide the strongest justification for this decision.

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Jimmie

11 months ago

The internal audit charter should clearly define the responsibilities of the internal audit activity. Option B seems the most appropriate justification here.

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