Exam IIA-CIA-Part2 All QuestionsBrowse all questions from this exam
Go to Exam
Question 199

The chief audit executive (CAE) manages a large internal audit activity (IAA) reporting functionally to the audit committee and administratively to the chief risk officer. During the CAE's recent unplanned medical leave, several internal audit reports were completed and waiting for CAE approval, however, no formal delegation of authority was in place to anticipate this situation. In order to preserve the independence of the IAA, which of the following would be the most appropriate individual to review and approve these reports during the CAE's absence?

    Correct Answer: D

    To preserve the independence of the internal audit activity (IAA), the most appropriate individual to review and approve the reports during the chief audit executive's (CAE) absence would be the audit committee chair. The audit committee chair has the necessary authority and independence from the administration, ensuring that the internal audit function remains unbiased and maintains its integrity. The engagement lead auditor, while knowledgeable, does not possess the same level of authority and might lack complete independence. In contrast, the chief risk officer is part of the administration and could compromise the independence of the audit reports.

Discussion
John1237Option: D

It is someone independent (in the internal audit activity) who has to approve the report. The line manager (e.g. the CEO or even the CRO) is involved in the implementation of the recommendations.

KonradKOption: D

if there is no set delegation of duties to Engagement Lead Auditor then why C and not D if Audit Committee chair is higher than Egagement Lead Auditor?

asdfghjk2020

The delegation is for the lower level not for the upper level and the audit committee chair can't approve the reports since being one of the recipients of the reports.