IIA-CIA-PART2 · Question #321
An internal auditor develops an engagement observation related to an organization's accumulation of large travel advances. The auditor observes that the organization's procedures do not require…
The correct answer is D. A cause of the organization's accumulation of large travel advances. The best description of the organization's procedures in this context is that they represent a cause of the organization's accumulation of large travel advances. The lack of a requirement for justification for travel advances greater than a specific amount is a procedural gap…
Question
An internal auditor develops an engagement observation related to an organization's accumulation of large travel advances. The auditor observes that the organization's procedures do not require justification for travel advances greater than a specific amount Which of the following best describes the organization's procedures?
Options
- AA criterion of the organization's accumulation of large travel advances
- BA condition of the organization's accumulation of large travel advances
- CA consequence of the organization's accumulation of large travel advances
- DA cause of the organization's accumulation of large travel advances
How the community answered
(67 responses)- A1% (1)
- B3% (2)
- C1% (1)
- D94% (63)
Explanation
The best description of the organization's procedures in this context is that they represent a cause of the organization's accumulation of large travel advances. The lack of a requirement for justification for travel advances greater than a specific amount is a procedural gap that directly contributes to the accumulation of large travel advances. This gap in the procedure is the root cause that leads to the observed condition of large travel advances accumulating without sufficient oversight or justification.
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