IIA IIA-CIA-Part1 Exam With Confidence Using Practice Dumps

To promote organizational independence for the internal audit activity, the audit committee should approve the annual budget and resource plan for the internal audit activity. This action ensures that the internal audit has sufficient resources to independently carry out its mandate without undue influence from management.

IIA guidance and standards concerning the role of the audit committee in supporting the independence and resources of the internal audit function.

This option best demonstrates the board of directors ' governance over internal control by illustrating their role in ensuring the continuity and integrity of leadership, which is a crucial aspect of the internal control environment. Succession planning, especially for top leadership positions, is a critical governance role that impacts the organization ' s strategy and risk management practices.

Institute of Internal Auditors (IIA) - Guidelines on Governance Roles of Boards

The internal audit activity reporting functionally to the chief financial officer (CFO) can impair an internal auditor ' s independence. Functionally reporting to the CFO, who may be responsible for areas under audit, could create a conflict of interest and affect the auditor ' s ability to act independently. This arrangement can compromise the objectivity required for the internal audit function as outlined in the IIA standards.

IIA Standard 1110 - Organizational Independence