IIA Exam IIA-CIA-Part1 Topic 8 Question 52 Discussion

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

Question #: 52
Topic #: 8

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: C

by Armando at May 29, 2024, 06:58 PM

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Bernardine

14 hours ago

I'm not sure, but doesn't the CFO have a vested interest in the audit results? I wouldn't want him giving 'expert advice' and potentially skewing the findings.

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Stevie

2 days ago

I agree with Dalene. The CFO may try to influence the audit process, and the CAE may feel pressured to avoid delving into certain areas under the CFO's control.

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Lea

5 days ago

I agree with Carin. It could limit the independence of the internal audit function.

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Dalene

7 days ago

Option A is the correct answer. When the CAE reports to the CFO, there is a risk of independence and objectivity issues, which can limit the scope of audits.

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Carin

14 days ago

I think if the CAE reports to the CFO, there may be limitation in the scope of engagements that can be undertaken.

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