Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 122

The chief audit executive (CAE) annually develops a budget and resource plan and submits it to the board for approval. This action best fulfills which of the following responsibilities of the CAE?

Answer options

• A. The responsibility to maintain organizational independence.
• B. The responsibility to perform engagements with due professional care.
• C. The responsibility to communicate corrective action plans to the board.
• D. The responsibility to define the purpose of the internal audit activity.

Correct answer: D

Explanation

The correct answer is D because developing a budget and resource plan is essential for defining the purpose and direction of the internal audit activity. Options A, B, and C, while relevant to the role of the CAE, do not directly relate to the process of creating and submitting a budget and resource plan for approval.