IIA Updated IIA-CIA-Part2 Exam Questions and Answers by georgiana

The primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan is that strategic plans reflect the organization's business objectives and overall attitude toward risk. Understanding the strategic direction of the organization helps the internal audit function align its activities with the key risks and objectives, ensuring that the audit plan is relevant and adds value to the organization by focusing on areas that could impact the achievement of strategic goals.

IIA Standards: 2010 - Planning

IIA Practice Guide: Developing the Internal Audit Strategic Plan

When communicating the results of the quality assurance and improvement program (QAIP) to the board of a large organization, the chief audit executive (CAE) should explain the rating conclusions and the impact of the results from the external assessment. This ensures transparency and helps the board understand the effectiveness and areas for improvement in the internal audit function.

Rating Conclusions: These provide a summary of the overall quality and performance of the internal audit function.

Impact Explanation: Discussing the impact helps the board understand how the results affect the internal audit's ability to fulfill its responsibilities and improve its processes.

Transparency: Clear communication of these aspects helps build trust and provides a basis for informed decision-making by the board.

 Implementing environmental and social safeguards aligns with the broader organizational goal of achieving sustainable development.

 These safeguards ensure that the organization operates in a manner that is environmentally responsible and socially conscious, which is crucial for long-term sustainability

According to the International Standards for the Professional Practice of Internal Auditing, the Chief Audit Executive (CAE) has a responsibility to ensure that the results of both assurance and consulting engagements are communicated to the appropriate parties. This ensures that the observations and recommendations are acknowledged and acted upon by those who have the authority to implement necessary changes or take corrective actions. This communication is crucial for ensuring that the findings of the internal audit are effectively utilized to improve governance, risk management, and control processes.

The Institute of Internal Auditors (IIA) Standard 2440 – Disseminating Results: "The chief audit executive must communicate results to the appropriate parties."

IIA Practice Guide on "Communicating Results"