Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 74

A large retail organization, which sells most of its products online, experiences a computer hacking incident. The chief IT officer immediately investigates the incident and concludes that the attempt was not successful. The chief audit executive (CAE) learns of the attack in a casual conversation with an IT auditor. Which of the following actions should the CAE take?
1. Meet with the chief IT officer to discuss the report and control improvements that will be implemented as a result of the security breach, if any.
2. Immediately inform the chair of the audit committee of the security breach, because thus far only the chief IT officer is aware of the incident.
3. Meet with the IT auditor to develop an appropriate audit program to review the organization's Internet-based sales process and key controls.
4. Include the incident in the next quarterly report to the audit committee.

Answer options

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

Correct answer: A

Explanation

The correct answer is A, as the CAE should meet with the chief IT officer to discuss the findings and potential control enhancements while also informing the audit committee chair about the incident. Option 2 is critical because the audit committee needs to be aware of any security incidents, and option 1 ensures that control improvements are discussed. The other options do not prioritize informing the audit committee, which is essential in this context.