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IIA-CIA-PART2 · Question #308

Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response…

The correct answer is B. Report the significant control issues to senior management and the board and recommend. When significant control issues are identified during a consulting engagement, it is the responsibility of the chief audit executive to ensure that these issues are communicated to senior management and the board. This ensures that the organization is aware of the risks and can…

Communicating Engagement Results and Monitoring Progress

Question

Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response from the chief audit executive?

Options

  • AEnd the consulting engagement and report the results to management as planned
  • BReport the significant control issues to senior management and the board and recommend
  • CMutually agree with the engagement client on corrective actions
  • DFocus on the consulting engagement and schedule an assurance engagement next to address the

How the community answered

(30 responses)
  • A
    7% (2)
  • B
    73% (22)
  • C
    17% (5)
  • D
    3% (1)

Explanation

When significant control issues are identified during a consulting engagement, it is the responsibility of the chief audit executive to ensure that these issues are communicated to senior management and the board. This ensures that the organization is aware of the risks and can take corrective action. Consulting engagements should not overshadow the priority of addressing critical control issues that may affect the organization's risk profile.

Topics

#consulting engagement#significant control issues#CAE responsibilities#board reporting

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