Certified Internal Auditor (CIA) Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Certified Internal Auditor Exam with comprehensive quizzes, flashcards, and multiple-choice questions. Each question includes detailed explanations to enhance understanding. Prepare confidently for your CIA certification!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What must retention policies specify for working papers?

Specify a minimum retention period of 3 years.
Be prepared by the audit committee.
Be approved by legal counsel.
Be approved by the external auditor.

The correct answer is: Be approved by legal counsel.

Retention policies for working papers are crucial to ensuring compliance with legal and regulatory requirements, as well as maintaining the integrity of the internal audit function. The correct approach indicates that retention policies should be approved by legal counsel. This is essential because legal counsel can provide insights into the statutory and regulatory obligations surrounding the storage and destruction of documents. They help ensure that the retention policies align with applicable laws that vary by jurisdiction, minimizing the risk of legal repercussions for improper retention or disposal of audit documents. The participation of legal counsel in the development of these policies also serves to protect the organization from potential litigation issues that might arise due to mishandling of sensitive information in the working papers. Their expertise can also ensure that the policies are comprehensive and address all necessary legal considerations. Other options, while they may cover aspects of working paper management, do not capture the critical need for legal approval and oversight which is fundamental to establishing robust and compliant retention policies.