IIA-CIA-PART1 · Question #44
During an audit of company expenses, the internal auditor performed a test using data analytics and identified a violation of the company's expenses policy. The auditor who discovered the issue…
The correct answer is C. Soft skills such as communication and negotiation. Option C is correct because the auditor's core problem was not a lack of technical skill - the analytics test was performed correctly and the violation was properly identified - but rather an inability to communicate findings clearly enough for a non-technical stakeholder (the…
Question
During an audit of company expenses, the internal auditor performed a test using data analytics and identified a violation of the company's expenses policy. The auditor who discovered the issue considered it a potential fraudulent transaction and informed the chief financial officer (CFO). The CFO dismissed the concern because he did not understand the data analytics test that was performed and the transaction was of a low value. Given this situation, which skills or competencies should this internal auditor seek to improve?
Options
- ASkills in evaluating the risk of fraud.
- BKnowledge of key IT risks and controls
- CSoft skills such as communication and negotiation.
- DKnowledge and understanding of the company's expenses policy
How the community answered
(22 responses)- A9% (2)
- B5% (1)
- C73% (16)
- D14% (3)
Explanation
Option C is correct because the auditor's core problem was not a lack of technical skill - the analytics test was performed correctly and the violation was properly identified - but rather an inability to communicate findings clearly enough for a non-technical stakeholder (the CFO) to understand and act on them. Effective negotiation would have also helped the auditor push back on the dismissal and escalate appropriately.
Why the distractors are wrong:
- A is wrong because the auditor already demonstrated fraud-evaluation skill by identifying the suspicious transaction - the issue was persuading others, not finding the issue.
- B is wrong because IT knowledge was not the gap; the auditor successfully executed the data analytics test.
- D is wrong because the auditor clearly knew the expenses policy well enough to spot a violation of it.
Memory tip: When the auditor finds the problem but can't convince anyone - the gap is communication/negotiation, not technical competence. Ask yourself: "Was the finding wrong, or was the message wrong?" Here, the message was wrong.
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