Exam IIA-CIA-Part1 topic 6 question 540 discussion

Actual exam question from IIA's IIA-CIA-Part1

Question #: 540
Topic #: 6

A chief audit executive is also responsible for some risk management activities, including consolidated risk reporting to senior management and the board. According to IIA guidance, which of the following would be the most appropriate way for these activities to be audited?

A. The engagement is overseen by an independent outside party.
B. Internal auditors who perform the engagement are not involved in any risk management services.
C. The chief financial officer is appointed by the board to conduct the review with the assistance of the internal audit activity.
D. A consulting engagement may be performed by the internal audit activity, but not an assurance engagement.

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Suggested Answer: B 🗳️

by Kozy at July 9, 2025, 3:33 p.m.

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Kozy

5 days, 6 hours ago

Selected Answer: A

When the chief audit executive (CAE) is involved in risk management activities, such as consolidated risk reporting, independence is impaired for any related assurance work. According to IIA Standard 1130.A1, in such cases, the CAE must arrange for the engagement to be overseen by an objective party outside of internal audit — typically an external reviewer or assessor.

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