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IIA Exam IIA-IAP Topic 2 Question 10 Discussion

Actual exam question for IIA's IIA-IAP exam
Question #: 10
Topic #: 2
[All IIA-IAP Questions]

Which of the following best ensures that the internal audit activity is free from undue interference from management?

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Suggested Answer: C

Comprehensive and Detailed Step-by-Step Explanation:

Reference to IIA Standards:

Standard 1110 - Organizational Independence: The chief audit executive (CAE) must report functionally to the board to ensure independence.

The audit charter must define the CAE's functional reporting line to the board, securing protection from undue management influence.

Reasoning:

Option C addresses the foundational document---the audit charter---that establishes the CAE's authority and independence.

Option A refers to operational standards, but they do not directly safeguard against interference.

Option B strengthens governance but is secondary to the audit charter in securing independence.

Impact:

A robust audit charter formalizes the CAE's reporting relationship and ensures organizational independence, empowering internal audit.


by Layla at Apr 08, 2025, 02:39 PM

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Na
7 days ago
A board audit committee? Sounds like a secret society of forensic accountants. I'll take the magic charter, please!
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Audry
13 days ago
The audit charter is the way to go. It's like a force field around the internal auditors - management can't just waltz in and start pulling strings.
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Dana
23 days ago
Comprehensive audit policies and procedures are a good foundation, but the formal reporting structure is really the strongest safeguard in my opinion.
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Ming
25 days ago
A board audit committee with independent members is key. They can provide oversight and shield the internal audit team from undue influence.
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Chi
28 days ago
I think the audit charter with the CAE's functional reporting relationship to the board is the best way to ensure audit independence. It's clear and formal.
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Elouise
20 days ago
A) Audit policies and procedures that are comprehensive and well-documented, in accordance with the Standards.
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Loren
1 months ago
I believe option C is also important, as it clearly defines the reporting relationship with the board.
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Dudley
2 months ago
I agree with Glenn, having an independent board audit committee is crucial for ensuring independence.
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Glenn
2 months ago
I think option B is the best choice.
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