IIA Exam IIA-CIA-Part1 Topic 4 Question 63 Discussion

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

Question #: 63
Topic #: 4

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

by Gail at Sep 15, 2024, 09:09 AM

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Sabra

2 months ago

I'm going with C) because it's the best way to keep the auditors from being under the thumb of management. Unless, of course, the audit committee is filled with management's friends. Then we're all doomed!

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Mabelle

3 months ago

A) Appointing the chief audit executive as a board member is a bit concerning. This could blur the lines of independence and create potential conflicts of interest.

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Jade

2 months ago

D) Establish the internal audit activity's position within the organization in an audit charter.

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Miriam

2 months ago

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

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Arminda

2 months ago

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

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Lenny

3 months ago

B) Adopting written policies and procedures approved by the board is also a good approach. This creates a clear framework for the internal audit activity to operate within.

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Long

1 months ago

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

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Sean

2 months ago

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

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Truman

2 months ago

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

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Mike

3 months ago

D) Establishing the internal audit activity's position within the organization in an audit charter is a great idea. This formalizes the independence and authority of the internal audit function.

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Sherita

27 days ago

D) Establish the internal audit activity's position within the organization in an audit charter.

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Johna

30 days ago

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

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Krystina

2 months ago

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

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Junita

2 months ago

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

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Shala

3 months ago

Why do you think option C is better?

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Rusty

3 months ago

I disagree, I believe option C is more effective.

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Eleonore

3 months ago

C) Ensuring the chief audit executive reports administratively to the audit committee seems like the most effective way to maintain independence. The audit committee is a neutral body that can provide oversight and protection from undue influence by management.

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