Certified Internal Auditor (CIA) Practice Test

Who is responsible for communicating the results of an external assessment of the internal audit activity to the board?

1. Internal auditors.

2. Audit committee.

3. Chief audit executive.

4. External auditors.

The correct answer is: Chief audit executive.

The responsibility for communicating the results of an external assessment of the internal audit activity to the board typically falls to the chief audit executive (CAE). The CAE is the individual who leads the internal audit function and serves as the main liaison between the internal audit team and the board or audit committee. The external assessment is a critical evaluation designed to ensure that the internal audit activity is operating in accordance with established standards and best practices; therefore, it is essential for the CAE to relay these findings to the board. This communication ensures transparency and allows the board to understand the effectiveness and credibility of the internal audit function. The CAE also plays a crucial role in addressing any recommendations made during the external assessment and formulating a plan for improvement. Although the audit committee often oversees the internal audit function and may be involved in discussions about the assessment results, it is the chief audit executive who directly communicates these results. Internal auditors are responsible for conducting audits, while external auditors focus on financial statements; neither holds the responsibility for reporting the external assessment findings to the board.