Pass IIA-CIA-Part3 Exam Guide

The CAE must communicate the results of the quality assurance and improvement program (QAIP), including internal assessments, to senior management and the board at least annually. This ensures that oversight bodies remain informed about the internal audit activity’s conformance with the Standards and opportunities for improvement.

Option A refers to external assessments, not internal quality reviews. Option C is too vague. Option D is incorrect, as validation is not required before reporting internal assessment results.

The Global Internal Audit Standards require that workpapers be properly supervised and reviewed to ensure quality and compliance. A sole auditor cannot perform a meaningful self-review (Option A). Having clients review workpapers (Option B) compromises independence. Having management or the board sign off (Option C) is also inappropriate as it undermines audit objectivity.

The most suitable solution is to arrange for peer reviews from external auditors or other organizations, with confidentiality and legal safeguards in place. This provides independent oversight while maintaining audit quality.

The CAE is responsible for monitoring progress selectively based on risk significance. Not every recommendation requires follow-up with the same intensity. Instead, the CAE should focus on high-risk issues and verify whether management has taken corrective actions.

Option A is too rigid and does not reflect risk-based prioritization. Option B is incorrect because the purpose of follow-up is not to revalidate audit issues but to ensure corrective actions were implemented. Option D incorrectly reverses the escalation order (unresolved issues must go from management → senior management → board).

The IIA Standards require that significant governance, risk management, or control issues be communicated to senior management and the board, regardless of whether they arise from assurance or advisory engagements.

Option A is misleading, as it overstates the audit committee’s role. Option C is incorrect because responsibility for final communication lies with the CAE, not the supervisor. Option D is also incorrect since the audit committee does not approve every report; that responsibility rests with internal audit leadership.