IIA Exam IIA-CRMA Topic 3 Question 90 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 90
Topic #: 3

[All IIA-CRMA Questions]

Which of the following best ensures the independence of the internal audit activity?

1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.

2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.

3. The internal audit charter requires the CAE to report functionally to the audit committee.

A3 only

B1 and 2 only

C2 and 3 only

D1, 2, and 3

Show Suggested Answer

Suggested Answer: A

by Mariann at Sep 15, 2024, 11:53 AM

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Sommer

17 days ago

Ah, the age-old question of internal audit independence. I'm guessing the answer is just 'bribe the audit committee and hope for the best'.

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Clarence

28 days ago

Wait, the CEO has to review the audit plan? Good luck getting that approved if it includes a line item for 'investigating the CEO's shady deals'.

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Johnson

1 days ago

Yeah, having that independence is crucial for ensuring the integrity of the audit process.

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Georgene

16 days ago

That's why it's important for the internal audit activity to report functionally to the audit committee.

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Alisha

1 months ago

I'm going with C - 2 and 3. The CAE reporting to the audit committee is non-negotiable, and the committee reviewing their performance is a nice added layer of oversight.

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Melina

1 days ago

True, the audit committee should also periodically review the performance of the CAE to ensure independence.

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Therese

27 days ago

I think it's important for the CEO and audit committee to review and endorse changes to the audit plan annually as well.

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Shannan

1 months ago

I agree, having the CAE report functionally to the audit committee is crucial for independence.

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Lennie

1 months ago

Hmm, I'm torn between 3 and D. Having the full package of 1, 2, and 3 does seem to be the most comprehensive approach to ensuring independence.

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Jonelle

1 months ago

I don't know, the CEO and audit committee reviewing the audit plan seems pretty important too. Maybe it's B - 1 and 2 together.

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Reuben

2 months ago

I think option D) 1, 2, and 3 is the best choice. Having the CEO and audit committee review and endorse changes to the audit plan also plays a crucial role in ensuring independence.

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Matthew

2 months ago

Option 3 seems to be the best answer. The internal audit charter should ensure the CAE reports to the audit committee for functional oversight, which is key for independence.

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