According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?

The correct answer is C. Coordinating and managing the risk management process. According to the Institute of Internal Auditors (IIA) guidance, the independence and objectivity of the internal audit function are fundamental principles. Independence is compromised if the internal audit function takes on roles or responsibilities that are part of…

Managing the Internal Audit Activity

Question

Options

AHaving no active role or involvement in the risk management process.
BAuditing the risk management process for reasonableness.
CCoordinating and managing the risk management process.
DParticipating with management in identifying and evaluating risks.

How the community answered

(22 responses)

B
5% (1)
C
91% (20)
D
5% (1)

Explanation

According to the Institute of Internal Auditors (IIA) guidance, the independence and objectivity of the internal audit function are fundamental principles. Independence is compromised if the internal audit function takes on roles or responsibilities that are part of management's duties. Coordinating and managing the risk management process is a management responsibility. If internal auditors assume this role, it impairs their ability to remain independent and objective when auditing the effectiveness of the risk management process.

Topics

#independence#risk management coordination#audit function objectivity#IIA Standards

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