Module: | SEBI LODR & Corporate Governance Frameworks
Q32: Consider the following statements regarding the Strategic Action Plan (2025-2029) issued by the Internal Audit Standards Board of the ICAI:
1. The plan actively promotes the integration of Artificial Intelligence (AI) and data analytics in internal auditing and financial decision-making.
2. A core focus of the first year (2025-2026) is revising existing Internal Audit Standards and issuing new sector-specific guidance for domains such as BFSI and PSUs.
3. The plan outlines a strategy to work with policymakers to formally mandate internal audit functions for corporate governance across broader sectors.
Which of the above statements is/are correct?
2. A core focus of the first year (2025-2026) is revising existing Internal Audit Standards and issuing new sector-specific guidance for domains such as BFSI and PSUs.
3. The plan outlines a strategy to work with policymakers to formally mandate internal audit functions for corporate governance across broader sectors.
Which of the above statements is/are correct?
✅ Correct Answer: D
🎯 Quick Answer:
D. All statements 1, 2, and 3 are correct.Structural Breakdown: Statement 1 is correct; technological and digital transformation, specifically through AI and RPA, is a foundational pillar of the plan.
Statement 2 is correct; Year 1 focuses on laying the groundwork by updating the core standards and generating sector-specific manuals.
Statement 3 is correct; policy advocacy to make internal audits legally mandatory in more corporate structures is a stated long-term goal.
Historical/Related Context: As external statutory audits face immense public scrutiny, the ICAI recognized that a company's internal audit function must be dramatically strengthened and digitized to act as the primary defense against internal fraud and systemic inefficiencies.
Causal Reasoning: AI and data analytics allow internal auditors to test 100% of a company's data population rather than relying on traditional sampling, leading to far more robust governance and earlier detection of anomalies.