IIA Exam IIA-CIA-Part1 Topic 1 Question 77 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 77
Topic #: 1

Due to the increased operational responsibility of the CEO the chief audit executive (CAE) of an organization currently reports to the chief financial officer (CFO) What is the likely impact of such a situation?

AThere may be limitation in the scope of engagements that can be undertaken

BThe CFO could provide expert advice when auditing areas under his purview

CThe internal audit activity is adequately positioned when the CAE reports to a member of executive management

DThe expertise of finance staff can be called upon during an audit of finance-related areas

Show Suggested Answer

Suggested Answer: A

by Iraida at Jul 14, 2025, 10:25 AM

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Laurena

6 days ago

I agree with Tamie. The CAE should report directly to the Board or Audit Committee to ensure objectivity and independence.

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Tamie

8 days ago

Option A seems the most likely. The CAE's independence could be compromised if they report to the CFO, limiting the scope of their audits.

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