Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

Question

Options

• AStrategic plans reflect the organization's business objectives and overall attitude toward risk.
• BStrategic plans are helpful to identify major areas of activity, which may direct the allocation of
• CStrategic plans are likely to show areas of weak financial controls.
• DThe strategic plan is a relatively stable document on which to base audit planning.

• A
  92% (23)
• B
  4% (1)
• C
  4% (1)

Explanation

The primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan is that strategic plans reflect the organization's business objectives and overall attitude toward risk. Understanding the strategic direction of the organization helps the internal audit function align its activities with the key risks and objectives, ensuring that the audit plan is relevant and adds value to the organization by focusing on areas that could impact the achievement of strategic goals.

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