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IIA-CIA-PART2 · Question #121

Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process Which of the following is true regarding the validity of the…

The correct answer is A. Valid closure requires evidence that ensures the corrected process will function as expected in the. Valid closure of an audit observation requires evidence that the corrected process will function as expected in the future. This involves not just addressing the immediate condition but also ensuring that the root cause has been addressed and that the implemented corrective…

Communicating Engagement Results and Monitoring Progress

Question

Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process Which of the following is true regarding the validity of the observation closure?

Options

  • AValid closure requires evidence that ensures the corrected process will function as expected in the
  • BValid closure requires the client lo address not only the condition, but also the cause of the
  • CValid closure of an observation ensures it will be included in the final engagement report
  • DValid closure requires assurance from management that the original problem will not recur in the

How the community answered

(16 responses)
  • A
    75% (12)
  • B
    13% (2)
  • C
    6% (1)
  • D
    6% (1)

Explanation

Valid closure of an audit observation requires evidence that the corrected process will function as expected in the future. This involves not just addressing the immediate condition but also ensuring that the root cause has been addressed and that the implemented corrective actions are sustainable and effective in preventing recurrence. This ensures that the underlying issue has been resolved comprehensively.

Topics

#observation closure#corrective evidence#process verification#engagement reporting

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