Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 58

Which of the following actions would have the greatest impact on the effectiveness of the internal audit activity?

Answer options

• A. Appropriate compliance coverage in the annual audit plan.
• B. Annual review of the audit charter by management.
• C. Appropriate definition of internal audit scope and responsibility in the charter.
• D. Assurance of internal audit objectivity and organizational independence by the board.

Correct answer: C

Explanation

The correct answer, C, is crucial because a well-defined scope and responsibility ensure that the internal audit can effectively address relevant areas. While the other options contribute to the audit's effectiveness, they do not have the same direct impact on clarifying the audit's focus and responsibilities.