IIA-CIA-PART2 · Question #192
An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in…
The correct answer is B. The CAE may distribute the report to tie service provider at no cost, after consulting with legal. According to internal auditing standards and best practices, the distribution of audit reports, especially those involving third-party service providers, must be handled with caution. The CAE should consult with legal counsel and the chief compliance officer before distributing…
Question
An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control deficiencies involving processes performed by the service provider. The service provider requested a copy of the report Which of Vie following would be the most appropriate response from the chief audit executive (CAE)?
Options
- AThe CAE would automatically sand a copy of the report to the service provider as many of the
- BThe CAE may distribute the report to tie service provider at no cost, after consulting with legal
- CThe CAE may provide a copy of the audit report to the service provider If an agreement & signed
How the community answered
(26 responses)- A15% (4)
- B77% (20)
- C8% (2)
Explanation
According to internal auditing standards and best practices, the distribution of audit reports, especially those involving third-party service providers, must be handled with caution. The CAE should consult with legal counsel and the chief compliance officer before distributing the audit report to ensure that the organization's legal and compliance obligations are met. This ensures that any sensitive information is protected and that the distribution is aligned with the organization's policies and contractual agreements with the service provider.
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