Question

Which of the follwing is the best reason for the CAE to consider the organiztion's strategic plan in devloping the annual internal audit plan?

a. to emphaiseze the imprtance of the internal audit function to the organiation.
b. to ensure that the internal audit plan will be approved by senior management.
c. To make recommendations to improve the strategic plan.
d. To ensure that the internal audit plan supports the overall business objectives.

Answer 1

The CAE should consider the organization's strategic plan to ensure that the internal audit plan aligns with and supports the organization's overall business objectives, providing value and improving operations.

Step-by-step explanation:

The question asks about the role of the Chief Audit Executive (CAE) in developing the annual internal audit plan with respect to the strategic plan of an organization. The best reason for the CAE to consider the organization's strategic plan is option (d): To ensure that the internal audit plan supports the overall business objectives. This is because the purpose of internal auditing is to provide independent assurance that the organization's risk management, governance, and internal control processes are operating effectively. When the internal audit aligns with the organization's strategic plan, it ensures that the auditing activities are relevant to the most significant risks and objectives facing the company. By focusing on areas that are crucial for the strategic success of the business, the internal audit provides value by improving the organization's operations.