Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 184

According to IIA guidance, which of the following components must be included in the annual report to the board on the quality assurance and improvement program?

Answer options

• A. Results from the assessment and the current status of resulting action plans.
• B. Disclosure of nonconformance that impacts the overall operation of the internal audit activity.
• C. Audit clients' feedback and recommendations for quality improvement.
• D. A statement of compliance with the Code of Ethics, Standards, and Definition of Internal Auditing.

Correct answer: D

Explanation

The correct answer is D because the annual report must include a statement of compliance with the Code of Ethics and Standards, which are essential for maintaining the integrity of the internal audit activity. Options A, B, and C, while important, do not capture the required compliance statement that assures the board of the audit function's ethical standards.