According to IIA Guidance, Which of the Following Individuals Would

question 43

Multiple Choice

According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA) ?

• A) A former employee knowledgeable of the IAA who resigned three years earlier from the organization.
• B) A competent employee of an independent external organization that provides co-sourcing services to the IAA.
• C) An employee in an affiliated organization who has never worked directly with the IAA.
• D) An employee in the parent organization who has not had any previous contact with the IAA.

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Definitions:

Defined Benefit Pension Plans

Retirement plans where the benefits that employees receive are calculated using formulas considering factors like salary history and tenure, rather than depending on investment returns.

Fiduciary Funds

Funds held by an entity in a trustee or agent capacity for others, requiring the entity to manage the funds for the benefit of the parties involved.

Financial Obligation

A legal commitment to fulfill a financial payment or service, including debts, contracts, and transactions.

Governmental Fund

A type of fund used in governmental accounting that focuses on the sources, uses, and balances of governmental financial resources, excluding proprietary and fiduciary activities.