The board requested the chief audit executive (CAE) to provide consulting services for a new systems implementation project Which of the following statements is true regarding this scenario?
A.
The CAE should avoid making decisions on risk responses within risk management processes.
B.
The CAE may only provide consulting and not assurance services in risk management processes
C.
The CAE may manage the project risks on behalf of management in this particular situation
D.
The CAE should avoid giving assurance on risk management processes in this particular situation
In the scenario where the board requests the chief audit executive (CAE) to provide consulting services for a new systems implementation project, the CAE should avoid making decisions on risk responses within risk management processes. The CAE’s role is to provide independent and objective assurance and consulting services. Making decisions on risk responses would impair the CAE's independence and objectivity, which are crucial for the internal audit function. Instead, the CAE can provide advice and recommendations on risk management practices while ensuring that management retains responsibility for decision-making.
The IIA Standards: Standard 1112 – Chief Audit Executive Roles Beyond Internal Auditing: "If the CAE has or is expected to have roles and/or responsibilities that fall outside of internal auditing, safeguards must be in place to limit impairments to independence or objectivity."
The IIA Practice Guide: "Independence and Objectivity": Discusses the importance of maintaining independence and objectivity in consulting engagements.
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