Answer (A) is correct . The CAE forms an overall opinion about the adequacy and effectiveness of the control processes. The expression of such an opinion by the CAE will be based on sufficient audit evidence obtained through the completion of audits and, if appropriate, reliance on the work of other assurance providers. The CAE communicates the opinion to senior management and the board annually (PA 2130-1).
Answer (B) is incorrect because Senior management is responsible for overseeing the establishment of internal control processes.
Answer (C) is incorrect because The board is responsible for implementing the organization’s governance processes.
Answer (D) is incorrect because The challenge for the internal audit activity is to evaluate the effectiveness of the organization’s control processes based on the aggregation of many individual assessments. Those assessments are largely gained from internal audit engagements, reviews of management’s self assessments, and other assurance providers’ work (PA?2130-1).
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