IIA Exam IIA-CRMA Topic 8 Question 82 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 82
Topic #: 8

Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

AAn independent third party has assessed the organization's system of internal controls to be adequate and effective.

BThe chief audit executive reports both functionally and administratively to the CEO.

CThe internal audit charter is drafted properly and approved by the appropriate parties.

DThe mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.

Show Suggested Answer

Suggested Answer: B

by Son at Jul 11, 2024, 03:37 PM

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Carin

6 months ago

Hmm, this is a tricky one. I'll have to go with B - reporting to the CEO is about as independent as it gets. Hey, at least they're not reporting to the CFO, right? That would be a real conflict of interest!

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Carmen

6 months ago

This is a tough one, but I'm going to have to go with option D. Aligning the internal audit's mission and strategy with the organization's objectives is key to its independence.

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Layla

6 months ago

I'm torn between B and C, but I think I'll go with C. A well-crafted charter is the backbone of a truly independent audit function.

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Major

5 months ago

Nancey: You both make good points. I'll reconsider my choice.

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Jettie

5 months ago

I agree with Jettie. The charter is key for independence.

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Nancey

5 months ago

I see your point, but I believe C is more crucial. A proper charter sets the foundation for independence.

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Van

5 months ago

I think B is the best option. Reporting directly to the CEO shows independence.

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Brent

6 months ago

Option B seems like the obvious choice. Reporting to the CEO? That's about as independent as it gets!

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Frank

6 months ago

I'll have to go with C. A properly drafted and approved charter is the gold standard for demonstrating independence.

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Devora

7 months ago

D is the way to go. Alignment with organizational objectives shows the internal audit is fully integrated and not just a standalone function.

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Nada

6 months ago

D) The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.

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Pauline

6 months ago

A) An independent third party has assessed the organization's system of internal controls to be adequate and effective.

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Dominic

7 months ago

Hmm, I'm not sure. I'd go with option B - reporting to the CEO is a pretty clear sign of independence, right?

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Antonio

6 months ago

I agree with you, option B does seem like a strong signal of independence. It's important to have that direct line to the top.

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Gladys

6 months ago

I see your point, but I still believe option B is the strongest indicator. Reporting directly to the CEO is a big deal.

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Alva

6 months ago

I think option A is the best evidence of independence. An independent third party assessment is key.

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Ernie

7 months ago

I think option C is the best answer. An approved charter demonstrates the independence of the internal audit function.

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Tayna

6 months ago

True, but having an independent third party assess the internal controls also provides strong evidence of independence.

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Herminia

6 months ago

That's a good point, alignment with organizational objectives is important for effectiveness.

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Paulina

6 months ago

But what about the mission statement and strategy aligning with organizational objectives? Doesn't that show independence too?

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Ligia

6 months ago

I agree, having a properly drafted and approved charter is crucial for demonstrating independence.

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Latosha

7 months ago

I agree with Casandra, option A provides objective evidence of independence.

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Casandra

7 months ago

But having an independent third party assessment shows external validation of independence.

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Sena

7 months ago

I disagree, I believe option C is more important for independence.

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Casandra

8 months ago

I think option A is the best evidence of organizational independence.

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