Exam IIA-CIA-Part1 topic 3 question 11 discussion

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

Question #: 11
Topic #: 3

Which of the following reporting relationships results in the greatest impairment to the independence of the chief audit executive (CAE)?

A. The CAE reports administratively and functionally to the president.
B. The CAE reports administratively to the president and functionally to the board.
C. The CAE reports administratively to the chief financial officer and functionally to the president.
D. The CAE reports administratively to the audit committee and functionally to the chief operating officer.

Show Suggested Answer

Suggested Answer: A 🗳️

by Magic_Fab at March 20, 2022, 4:38 p.m.

Comments

Submit Cancel

Kozy

1 month, 1 week ago

Selected Answer: C

C - Correct Answer Administrative reporting to the CFO risks conflicts of interest, as the CFO is a member of senior management directly responsible for financial processes that internal audit may review. Functional reporting to the president is insufficient, as the president is still part of executive management, not an independent oversight body like the board or audit committee.

upvoted 1 times

...

Guyana_Farouk

11 months, 1 week ago

The question is what is greatest impairment to the CAE independence?

upvoted 1 times

...

Magic_Fab

2 years, 4 months ago

I disagree with A. D sounds better because the CAE should functionally report to the board and administratively to the CEO

upvoted 1 times

John1237

2 years, 2 months ago

In D, there is a single hierarchical and functional reporting relationship. In addition, the Board is not taken into the equation.

upvoted 1 times

...