Exam IIA-CIA-Part2 topic 4 question 78 discussion

Actual exam question from IIA's IIA-CIA-Part2

Question #: 78
Topic #: 4

The chief audit executive (CAE) manages a large internal audit activity (IAA) reporting functionally to the audit committee and administratively to the chief risk officer. During the CAE's recent unplanned medical leave, several internal audit reports were completed and waiting for CAE approval, however, no formal delegation of authority was in place to anticipate this situation. In order to preserve the independence of the IAA, which of the following would be the most appropriate individual to review and approve these reports during the CAE's absence?

A. External auditor.
B. Chief risk officer.
C. Engagement lead auditor.
D. Audit committee chair.

Show Suggested Answer

Suggested Answer: C 🗳️

by KonradK at July 26, 2021, 2:29 p.m.

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John1237

11 months, 4 weeks ago

It is someone independent (in the internal audit activity) who has to approve the report. The line manager (e.g. the CEO or even the CRO) is involved in the implementation of the recommendations.

upvoted 1 times

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KonradK

1 year, 6 months ago

if there is no set delegation of duties to Engagement Lead Auditor then why C and not D if Audit Committee chair is higher than Egagement Lead Auditor?

upvoted 2 times

asdfghjk2020

1 year, 4 months ago

The delegation is for the lower level not for the upper level and the audit committee chair can't approve the reports since being one of the recipients of the reports.

upvoted 4 times

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