Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 84

A corporate merger decision prompts the chief audit executive (CAE) to propose interim changes to the existing annual audit plan to account for emerging risks. Which of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan?

Answer options

• A. Present the revised audit plan directly to the board for approval.
• B. Communicate with the chief financial officer and present the revised audit plan to the CEO for approval.
• C. Present the revised audit plan directly to the CEO for approval.
• D. Communicate with the CEO and present the revised audit plan to the board for approval.

Correct answer: D

Explanation

The correct answer is D because the CAE should ensure that both the CEO and the board are informed and involved in the approval process, especially given the significant implications of a merger. Options A, B, and C do not fully engage the board in the decision-making process, which is crucial in managing the overall governance of the audit plan.