Qualification in Internal Audit Leadership (QIAL) — Question 6

Which of the following statements is true in regard to policies and procedures for guiding the internal audit activity?

Answer options

• A. A small internal audit activity may be managed informally.
• B. All internal audit activities need formal policies and procedures to guide them regardless of size. C.A large internal audit activity may be managed informally if the chief audit executive decides to do so.
• D. There is no need for separate policies and procedures if audits are conducted in accordance with The IIA’s International Professional Practices Framework.

Correct answer: A

Explanation

The correct answer is A because smaller internal audit activities can effectively operate without formal management structures, allowing for flexibility. Options B and D incorrectly suggest that formal policies are necessary for all sizes or that they can be disregarded entirely, which is not true. Option C implies that larger activities can also operate informally, but this does not align with standard practices.