IIA-CIA-PART2 · Question #216
An internal auditor s testing tor proper authorization of contracts and finds that the rate of deviations discovered in the sample is equal to the tolerable deviation rate. When of the following is…
The correct answer is C. The internal auditor concludes that the specified control is acceptably effective. When the rate of deviations discovered in the sample equals the tolerable deviation rate, it means that the control is functioning at the level deemed acceptable by the auditor's predefined criteria. This does not necessarily imply that the control is flawless, but rather that…
Question
An internal auditor s testing tor proper authorization of contracts and finds that the rate of deviations discovered in the sample is equal to the tolerable deviation rate. When of the following is the most appropriate conclusion for the internal auditor to make based on this result?
Options
- AThe internal auditor concludes that management may be placing undue reliance on me specified
- BThe internal auditor concludes that the specified control is more effective than it really is.
- CThe internal auditor concludes that the specified control is acceptably effective
- DThe internal auditor concludes that additional testing will be required to evaluate the specified
How the community answered
(40 responses)- A5% (2)
- B8% (3)
- C73% (29)
- D15% (6)
Explanation
When the rate of deviations discovered in the sample equals the tolerable deviation rate, it means that the control is functioning at the level deemed acceptable by the auditor's predefined criteria. This does not necessarily imply that the control is flawless, but rather that its effectiveness meets the minimum standards set by the audit plan. Therefore, the internal auditor can conclude that the control is acceptably effective, but should also note the potential need for improvement.
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