IIA-CIA-PART2 · Question #288
A chief audit executive (CAE) following up on action plans from previously completed audits identifies that management has determined that certain action plans are no longer necessary If the CAE…
The correct answer is D. The CAE must discuss the matter with the board. If the Chief Audit Executive (CAE) disagrees with management's decision to deem certain action plans no longer necessary, the CAE must discuss the matter with the board. The board has the ultimate responsibility for oversight of the internal audit function and for ensuring that…
Question
A chief audit executive (CAE) following up on action plans from previously completed audits identifies that management has determined that certain action plans are no longer necessary If the CAE disagrees with management's decision, which of the following is the most appropriate next step for the CAE to take?
Options
- AThe CAE must discuss the matter with senior management
- BThe CAE must discuss the matter with key shareholders
- CThe CAE must discuss the matter with legal counsel
- DThe CAE must discuss the matter with the board
How the community answered
(23 responses)- A17% (4)
- B9% (2)
- C4% (1)
- D70% (16)
Explanation
If the Chief Audit Executive (CAE) disagrees with management's decision to deem certain action plans no longer necessary, the CAE must discuss the matter with the board. The board has the ultimate responsibility for oversight of the internal audit function and for ensuring that management addresses audit recommendations appropriately. Escalating the issue to the board ensures that the CAE fulfills their duty to report significant issues and disagreements to those charged with governance.
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