Question

The chief audit executive's responsibility for assessing and reporting on control processes includes

A. Maintaining the organization's governance processes.
B. Communicating to senior management and the board an annual judgment about internal control.
C. Overseeing the establishment of internal control processes.
D. Arriving at a single assessment based solely on the work of the internal audit activity.

Answer 1

The correct answer to the question is B. Communicating to senior management and the board an annual judgment about internal control.

Step-by-step explanation:

The chief audit executive's responsibility in assessing and reporting on control processes is primarily geared towards providing a judgment on the efficacy and adequacy of internal controls. This role involves evaluating the effectiveness of governance, risk management, and control processes and reporting significant issues related to the processes reviewed.

It does not include maintaining governance processes or overseeing the establishment of control processes, as these are generally management responsibilities. Furthermore, while internal audit activities inform their assessment, chief audit executives should not rely solely on these; they should consider all relevant sources of information.