Why Is It Important for the Chief Audit Executive to Periodically

question 400

Multiple Choice

Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

• A) Because management requires the review to measure effectiveness of the internal audit activity.
• B) So that the individual objectivity of the internal audit staff can be more clearly established.
• C) So that there is assurance of the internal audit staff's proficiency to complete audit activities.
• D) Because changes in the organization may impair the internal audit activity's ability to meet its objectives.

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Definitions:

Possible Justification

Potential reasoning or explanation that can support or legitimize a particular action or decision.

Market Leader

A company or brand that has the highest sales or market share in a particular industry or market.

Sherman Act

The Sherman Act is a foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Joint Action

A collaborative effort where two or more parties work together towards a common goal, typically in a legal or governmental context.