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IIA-CIA-PART2 · Question #432

IIA-CIA-PART2 Question #432: Real Exam Question with Answer & Explanation

The correct answer is A. Visiting the grantee to assess whether the execution of the project was in line with the defined. By a grantee that received a charitable contribution, the most effective method is to visit the grantee and directly assess whether the project execution aligns with the scope defined in the grant. This method provides firsthand evidence of the grantee's activities and ensures th

Question

An internal audit activity has to confirm the validity of the activities reported by a grantee that received a charitable contribution from the organization. Which of the following methods would best help meet this objective?

Options

  • AVisiting the grantee to assess whether the execution of the project was in line with the defined
  • BVerifying that the grantee's final report is in line with what was depicted in the initial budget
  • CReconciling general ledger accounts used by management of the area under review for reflecting
  • DInterviewing employees of the corporate affairs department, which is responsible for charitable

Explanation

By a grantee that received a charitable contribution, the most effective method is to visit the grantee and directly assess whether the project execution aligns with the scope defined in the grant. This method provides firsthand evidence of the grantee's activities and ensures that the charitable contributions are used as intended.

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