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The chief audit executive (CAE) of a large organization has been asked by the board to assume responsibility for risk management and compliance operations, both of which are distinct departments within the organization and are subject to periodic audits by the internal audit activity In regards to future audits of these functions which of the following approaches would be most appropriate?
Correct Answer: A
Given the chief audit executive's (CAE) new responsibility for the risk management and compliance operations, the independence of the internal audit activity could be compromised in future audits of these functions. Therefore, to maintain objectivity and impartiality, audits of risk management and compliance functions should ideally be overseen by a competent external assurance provider. This approach ensures that the audit is free from internal influence and bias, aligning with the IIA's standards on independence and objectivity.References: IIA Standard 1110 - Organizational Independence