Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 104

A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed.
In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:

Answer options

• A. Review the recommendations in all environmental audit reports.
• B. Discuss with the environmental auditors the results of their reviews.
• C. Periodically carry out a quality assessment of the environmental audit activity.
• D. Include a review of environmental issues in some internal audit engagements.

Correct answer: C

Explanation

The correct answer is C because conducting periodic quality assessments of the environmental audit activity ensures that the audits are effective and compliant with standards. Options A and B do not directly enhance the internal audit's evaluation of the environmental audit's quality, while D does not focus on the necessary oversight of the environmental audit function itself.