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Question 310 - IIA-CIA-Part2 discussion

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While conducting a review of the logistics department the internal audit team identified a crucial control weakness. The chief audit executive (CAE) decided to prepare an audit memorandum for management of the logistics department followed by an informal meeting What is the most likely reason the CAE decided to prepare the audit memorandum?

A.
To report up-to-date audit progress to management
Answers
A.
To report up-to-date audit progress to management
B.
To ensure that the internal audit team and the CAE are aligned with regard to the identified weakness
Answers
B.
To ensure that the internal audit team and the CAE are aligned with regard to the identified weakness
C.
To allow management to address the identified weakness timely
Answers
C.
To allow management to address the identified weakness timely
D.
To obtain management's agreement with regard to the identified weakness
Answers
D.
To obtain management's agreement with regard to the identified weakness
Suggested answer: C

Explanation:

The most likely reason the Chief Audit Executive (CAE) decided to prepare an audit memorandum for management of the logistics department is to allow management to address the identified weakness timely. An audit memorandum serves as a formal communication that highlights the issue and provides management with the necessary details to understand and address the control weakness promptly. This approach facilitates immediate corrective action, thereby reducing the risk associated with the identified weakness.

The Institute of Internal Auditors (IIA) Standard 2420 -- Quality of Communications: 'Communications must be accurate, objective, clear, concise, constructive, complete, and timely.'

IIA Practice Guide on 'Engagement Communication'

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asked 18/09/2024
Kristian Michael Matias
44 questions
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