Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 44

The chief audit executive (CAE) of a new organization is in the process of determining the manner in which audit reports will be distributed and to whom.
According to the Standards, which of the following is the most appropriate course of action for the CAE to take to develop this distribution process?

Answer options

• A. The process should be determined in meetings with the external auditor and senior management to ensure alignment with external reporting.
• B. The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.
• C. The CAE should independently implement the report distribution, using best judgment to ensure that all relevant stakeholders are informed.
• D. The CAE should request that senior management and the board meet to determine the most appropriate reporting method.

Correct answer: B

Explanation

The correct answer is B because it emphasizes the importance of involving senior management for their insights while ensuring that the board has the final say in report distribution, aligning with governance practices. Options A and D suggest reliance on external parties and meetings that may delay the process, while option C lacks necessary collaboration with key stakeholders.