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

2 months 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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Carolynn

19 days ago

Exactly, it's important for the internal audit activity to have that level of independence.

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Apolonia

22 days ago

User 3: Yeah, having the CAE report functionally to the audit committee is crucial for independence.

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Nobuko

23 days ago

Agreed, having the CAE report functionally to the audit committee ensures independence.

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Shawnda

27 days ago

I believe the best option is C) 2 and 3 only.

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Coletta

28 days ago

User 2: I agree. Option 3 seems to be the best choice to ensure independence.

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Elliot

1 months ago

I don't think bribery is the answer here.

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Jill

1 months ago

User 1: That's not the right approach. We need to ensure independence in a more ethical way.

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Clarence

2 months 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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Reed

1 months ago

Definitely, it helps prevent any conflicts of interest and ensures transparency in the audit activities.

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Johnson

2 months ago

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

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Georgene

2 months ago

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

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Alisha

3 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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Ashlyn

1 months ago

So, we both agree that options 2 and 3 are necessary for ensuring the independence of the internal audit activity.

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Melina

2 months ago

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

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Therese

2 months 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

3 months ago

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

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Lennie

3 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

3 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

3 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

3 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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