Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 22

Due to urgent requests from management, a busy internal audit activity finds that it can no longer meet all of its commitments contained in the annual audit plan.
The best course of action for the chief audit executive to take would be to:

Answer options

• A. Continue with the plan and seek opportunities to adjust priorities and reallocate resources.
• B. Advise senior management and request that they reconsider these additional requests using more rigorous risk assessment and prioritization factors.
• C. Advise the board and senior management and request a reassessment of the plan.
• D. Advise the board immediately and seek their support for additional resources to meet the needs of the plan.

Correct answer: C

Explanation

The correct answer is C because it emphasizes the need to communicate with both the board and senior management about the limitations of the current plan and seek their input on a reassessment. Options A and D do not adequately involve both the board and senior management in the decision-making process, while option B focuses solely on senior management without the broader consultation needed for a comprehensive review.