Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 214

Which of the following would be considered a violation of The IIA's mandatory guidance on independence?

Answer options

• A. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.
• B. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE.
• C. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.
• D. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.

Correct answer: C

Explanation

The correct answer is C because confirming the organizational independence of the internal audit activity at least once every five years is a mandatory requirement that ensures the audit function remains objective. Options A and B do not violate independence as they involve appropriate reporting lines and salary recommendations, while option D lacks a specific timeline for charter updates, but does not inherently violate independence.