Certified Internal Auditor (CIA) Practice Test

What is the principal responsibility of the CAE regarding internal audit objectivity?

1. Encourage the objectivity of the board

2. Encourage the objectivity of the CEO

3. Foster an attitude of professional skepticism among board members

4. Maintain individual objectivity

The correct answer is: Maintain individual objectivity

The principal responsibility of the Chief Audit Executive (CAE) regarding internal audit objectivity is to maintain individual objectivity. This emphasizes the need for the CAE and internal auditors to conduct their work without bias, conflicts of interest, or undue influence from external parties. By maintaining objectivity, the internal audit function can provide an unbiased assessment of the organization's operations and controls, which is critical for the effectiveness and credibility of the audit process. The CAE sets the tone for the audit team’s objectivity by ensuring that auditors approach their work with an impartial mindset, focusing on the facts and evidence available. This is essential for fostering trust in the audit conclusions and recommendations, which ultimately supports the overall governance structure of the organization. In this context, encouraging the objectivity of board members or the CEO, or fostering professional skepticism among them, is not the primary responsibility of the CAE. While these aspects are important for overall governance and oversight, they do not directly pertain to the individual auditor's need to be objective in their assessments and evaluations. Therefore, the emphasis on maintaining individual objectivity reflects the core responsibility of the CAE in ensuring the integrity and effectiveness of the internal audit function.