IIA-CIA-PART1 · Question #130
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
The correct answer is D. The compensation structure of the qualified assessment team. Heads-up: the provided correct answer appears to be incorrect based on IIA Standards. According to IIA Standard 1320 (Reporting on the Quality Assurance and Improvement Program), option A is the correct answer, not D. Here's why: Why A is correct: The CAE is required to…
Question
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
Options
- AThe scope and frequency of both internal and external quality assessments.
- BThe list of audit engagements that will be assessed during the year.
- CThe number and qualifications of internal audit staff members assigned to perform internal
- DThe compensation structure of the qualified assessment team.
How the community answered
(32 responses)- A16% (5)
- B3% (1)
- C9% (3)
- D72% (23)
Explanation
Heads-up: the provided correct answer appears to be incorrect based on IIA Standards.
According to IIA Standard 1320 (Reporting on the Quality Assurance and Improvement Program), option A is the correct answer, not D. Here's why:
Why A is correct: The CAE is required to communicate QAIP results to senior management and the board, and the standard explicitly mandates disclosure of "the scope and frequency of both internal and external assessments." This is a governance-level matter appropriate for the board agenda.
Why the other options are wrong:
- B (list of audit engagements to be assessed) is an operational planning detail managed internally - not board-level governance information.
- C (number and qualifications of internal audit staff) is a staffing/resource management matter handled by the CAE, not a board agenda item.
- D (compensation structure of the assessment team) is an administrative/HR detail with no basis in IIA standards as a required board disclosure - this is the least likely board agenda item.
Memory tip: For QAIP board reporting questions, think "SQIF" - Scope, Quality results, Independence of assessors, Frequency of assessments. These are the elements IIA Standard 1320 requires the CAE to disclose to senior management and the board. If an answer choice matches one of those elements, it's likely correct.
If this question came from a study guide, I'd flag it as a potential error - the answer key may have a typo.
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