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How should an internal auditor approach preparing a detailed risk assessment during engagement planning?
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Internal audit staff lacks the expertise to perform a fraud investigation engagement stemming from a whistleblowing incident. Which of the following is the most appropriate option for the chief audit executive?
According to the MA guidance, which of the following does the engagement work program test in a review of an organizational process?
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During follow-up. the internal auditor discovered that operational management did not implement effective actions to address a significant control breach If the issue is left unresolved it may result in regulatory sanctions and damage the organization's reputation What is the most appropriate next step for the chief audit executive to lake?
A code of business conduct should include which of the following to increase its deterrent effect? 1. Appropriate descriptions of penalties for misconduct. 2. A notification that code of conduct violations may lead to criminal prosecution. 3. A description of violations that injure the interests of the employer. 4. A list of employees covered by the code of conduct.

Question 219 - IIA-CIA-Part2 discussion

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Which of the following would most likely prompt special notification from the chief audit executive to same management?

A.
Operational management has decried to weigh an audit issue against the organization's risk tolerance
Answers
A.
Operational management has decried to weigh an audit issue against the organization's risk tolerance
B.
A controls inaccurate operation has materially impacted the accuracy of the poor year's financial statements
Answers
B.
A controls inaccurate operation has materially impacted the accuracy of the poor year's financial statements
C.
Occurrences of asset misappropriation have been identified as a result of an ineffective operational control design
Answers
C.
Occurrences of asset misappropriation have been identified as a result of an ineffective operational control design
D.
The controls that management performed to confirm compliance with health and safety standards were not systematically documented
Answers
D.
The controls that management performed to confirm compliance with health and safety standards were not systematically documented
Suggested answer: B

Explanation:

A material impact on the accuracy of the prior year's financial statements due to the inaccurate operation of controls is a significant issue that would likely prompt special notification from the chief audit executive (CAE) to senior management. This is because such an issue can have substantial implications for the organization's financial reporting, stakeholder trust, and compliance with regulatory requirements. Immediate notification ensures that senior management can take timely corrective action to address and remediate the issue.

The Institute of Internal Auditors (IIA) Standards

Internal Audit Guidelines on Material Misstatements and Communication

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asked 18/09/2024
Vincent Dsouza
37 questions
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