A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief...

Vendor: IIA
Product: IIA-ACCA
Update on: Jul 29, 2025
Questions: 604

IIA IIA-ACCA Question Answer

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Appoint the CAE as a member of the board.

Move the CAE's functional reporting to an executive who is not on the board.

Obtain full board approval of the internal audit activity's annual audit plan.

Move the CAE's functional reporting to the audit committee.