Question 29

Question

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?

Accepted Answer

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

Zoe T. · Answer

I don’t think C is right here, pretty sure the biggest independence comes with audit committee oversight so D. Board approval (C) is good but not as strong. Saw similar in practice q’s.

Cameron Z. · Answer

C/D? If there's an audit committee, D is stronger. Without one, I'd say C. Board structure matters.

Jordan C. · Answer

A is wrong, D. Functional reporting to the audit committee gives more independence per IIA guidance. If the board didn't have an audit committee though, would C be a better pick?

IIA IIA-CRMA Real Exam Questions [October 2026 Update] Quiz

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