IIA-CIA-PART2 · Question #258
A corporate merger decision prompts the cruel audit executive (CAE) to propose interim changes lo the existing annual audit plan to account for emerging risks. When of the following is the most…
The correct answer is A. Present the revised audit plan directly to the board for approval. According to the International Standards for the Professional Practice of Internal Auditing (Standards) issued by The Institute of Internal Auditors (IIA), the Chief Audit Executive (CAE) must communicate and obtain approval from the board for significant changes to the audit…
Question
A corporate merger decision prompts the cruel audit executive (CAE) to propose interim changes lo the existing annual audit plan to account for emerging risks. When of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan?
Options
- APresent the revised audit plan directly to the board for approval
- BCommunicate with the chief financial officer and present the revised audit plan to the CEO for
- CPresent the revised audit plan directly to the CEO for approval
- DCommunicate with the CCO and present the revised audit plan to the board for approval
How the community answered
(30 responses)- A77% (23)
- B7% (2)
- C3% (1)
- D13% (4)
Explanation
According to the International Standards for the Professional Practice of Internal Auditing (Standards) issued by The Institute of Internal Auditors (IIA), the Chief Audit Executive (CAE) must communicate and obtain approval from the board for significant changes to the audit plan. A corporate merger is a significant event that introduces emerging risks, necessitating an interim adjustment to the audit plan. The CAE's responsibility includes ensuring that the board is informed and approves the revised audit plan to address these new risks adequately.
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