Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 231

According to IIA guidance, which of the following statements is true regarding the annual audit plan?

Answer options

• A. The annual audit plan should only be adjusted in response to problems with resourcing, scope, and data availability
• B. The chief audit executive (CAE) may incorporate risk information, including risk appetite levels from management, for the audit plan at her discretion
• C. In an immature risk management environment, it is preferable for the CAE to rely solely on her judgment regarding risk identification and assessment to develop the audit plan.
• D. The CAE may make adjustments to the annual audit plan as needed without senior management or board approval

Correct answer: B

Explanation

Option B is correct because it acknowledges the CAE's discretion to incorporate risk information into the audit plan, which is supported by IIA guidance. Option A is incorrect as it limits adjustments to specific issues, while option C suggests an approach that is not advisable in a developing risk environment. Option D is also wrong since the CAE typically requires approval for significant changes to the audit plan.