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A manufacturing organization's chief audit executive (CAE) was approached by the head of security from one of the manufacturer's third party suppliers The head of security requested internal audit records from a recent audit engagement involving the third-party supplier The head of security believed those records contained information that would enable to identify employees of the third-party supplier who may be involved m fraudulent activities What is the most appropriate course of action for the CAE?
Correct Answer: D
When dealing with requests for internal audit records, especially those involving third parties, it is crucial to balance the need for confidentiality with the potential benefits of sharing information. According to IIA guidance, the chief audit executive (CAE) should consult with senior management to ensure that any decision to release audit records is aligned with the organization's policies, legal considerations, and ethical standards. Consulting with senior management allows for a thorough evaluation of the implications of releasing the records, including potential risks, legal constraints, and the impact on relationships with third-party suppliers. This collaborative approach ensures that the decision is well-informed and appropriately authorized. References: * IIA Standard 2440: Disseminating Results * IIA Code of Ethics: Confidentiality Principle