Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 232

Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.

Answer options

• A. 1 and 2 only
• B. 3 and 4 only
• C. 1, 3, and 4 only
• D. 2, 3, and 4 only

Correct answer: D

Explanation

The correct answer is D because providing assurance on the appropriateness of the charter and maintaining open communication are essential for an effective relationship with the audit committee. While options A and C include some relevant activities, they do not encompass all the necessary actions, and option B excludes important elements.