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How should an internal auditor approach preparing a detailed risk assessment during engagement planning?
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Question 203 - IIA-CIA-Part2 discussion

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An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control deficiencies involving processes performed by the service provider. The service provider requested a copy of the report Which of Vie following would be the most appropriate response from the chief audit executive (CAE)?

A.
The CAE would automatically sand a copy of the report to the service provider as many of the findings relate to Via area managed by the service provider
Answers
A.
The CAE would automatically sand a copy of the report to the service provider as many of the findings relate to Via area managed by the service provider
B.
The CAE may distribute the report to tie service provider at no cost, after consulting with legal counsel and tie chief compliance officer
Answers
B.
The CAE may distribute the report to tie service provider at no cost, after consulting with legal counsel and tie chief compliance officer
C.
The CAE may provide a copy of the audit report to the service provider If an agreement & signed and the service provider agrees to reimburse the cost of the audit D, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry
Answers
C.
The CAE may provide a copy of the audit report to the service provider If an agreement & signed and the service provider agrees to reimburse the cost of the audit D, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry
Suggested answer: B

Explanation:

According to internal auditing standards and best practices, the distribution of audit reports, especially those involving third-party service providers, must be handled with caution. The CAE should consult with legal counsel and the chief compliance officer before distributing the audit report to ensure that the organization's legal and compliance obligations are met. This ensures that any sensitive information is protected and that the distribution is aligned with the organization's policies and contractual agreements with the service provider.

The Institute of Internal Auditors (IIA) Standards

Internal Audit Guidelines on Confidentiality and Distribution of Audit Reports

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asked 18/09/2024
jaimie lloyd
44 questions
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