Which of the following factors should a chief audit executive consider when determining the audit universe? 1. Components of the organization's strategic plan. 2. Inputs from senior management and…

The correct answer is C. 1, 2, and 4. When determining the audit universe, the CAE should consider components of the organization's strategic plan (Option 1), inputs from senior management and the board (Option 2), and results of exit interviews with departing employees (Option 4). These factors provide a…

Managing the Internal Audit Activity

Question

Which of the following factors should a chief audit executive consider when determining the audit universe? 1. Components of the organization's strategic plan. 2. Inputs from senior management and the board. 3. Views of competitors and business associates. 4. Results of exit interviews with departing employees.

Options

A1 and 2 only
B2 and 4 only
C1, 2, and 4
D2, 3, and 4

How the community answered

(28 responses)

A
7% (2)
B
4% (1)
C
86% (24)
D
4% (1)

Explanation

When determining the audit universe, the CAE should consider components of the organization's strategic plan (Option 1), inputs from senior management and the board (Option 2), and results of exit interviews with departing employees (Option 4). These factors provide a comprehensive understanding of the organization's objectives, risks, and areas needing attention. Views of competitors and business associates (Option 3) are not typically a direct consideration for the audit universe, as the focus is primarily on internal factors and direct stakeholder inputs.

Topics

#audit universe#audit planning#risk assessment#stakeholder input

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