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Question 154

According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?

The chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.

The CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.

The CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.

Whenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in

Correct Answer: A

A healthy relationship between the audit committee and the internal audit function is characterized by the CAE having direct access to the audit committee and the board. This access facilitates clear and effective communication, ensuring that significant issues such as material weaknesses in the control environment are promptly communicated, without unnecessary involvement in routine matters. This enables the audit committee to focus on critical issues and maintain effective oversight.

Discussion

Brad626Option: D

How can the Audit Committee not be given copies of audit reports ??

John1237

Reports are not mandatory in writing.

Amer105

the executive summary is what should AC received which is scope of audit and result of high finding

KCDU

The AC should be provided summaries of the Audit Reports, which include the Scope/Findings/Recommendations. They do not need the whole report.

gemmahOption: D

Șthey only receive the ones for entities were the control environment is not effective - e.g inadequately controlled reports. otherwise, the others are not being sent to the AC. In short - they should be aware of the issues, not the things going ok...