According to an internal audit observation, the organization's rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has…

The correct answer is B. Cause. In the context of an internal audit observation, the cause component should be added to explain why the subsidiary has thousands of client contracts on paper instead of in the required electronic system. The cause helps identify the root reason behind the non-compliance with…

Communicating Engagement Results and Monitoring Progress

Question

According to an internal audit observation, the organization's rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has thousands of client contracts on paper, which are kept in the office because there are not enough assistants to scan the contracts into the system. Which of the following component should be added to this observation?

Options

ACriteria
BCause
CEffect
DCondition

How the community answered

(43 responses)

A
2% (1)
B
88% (38)
C
7% (3)
D
2% (1)

Explanation

In the context of an internal audit observation, the cause component should be added to explain why the subsidiary has thousands of client contracts on paper instead of in the required electronic system. The cause helps identify the root reason behind the non-compliance with the organization's rules of record management. In this case, the cause could be the lack of sufficient assistants to scan the contracts into the system. Including the cause in the observation provides clarity on the underlying issues and helps in formulating effective recommendations to address

Topics

#audit observation components#cause analysis#record management#observation documentation

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