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Which of the following is an appropriate responsibility for the internal audit activity with regard to the organization's risk management program?

Question 318 - IIA-CIA-Part2 discussion

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Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response from the chief audit executive?

A.
End the consulting engagement and report the results to management as planned
Answers
A.
End the consulting engagement and report the results to management as planned
B.
Report the significant control issues to senior management and the board and recommend corrective action
Answers
B.
Report the significant control issues to senior management and the board and recommend corrective action
C.
Mutually agree with the engagement client on corrective actions
Answers
C.
Mutually agree with the engagement client on corrective actions
D.
Focus on the consulting engagement and schedule an assurance engagement next to address the control issues
Answers
D.
Focus on the consulting engagement and schedule an assurance engagement next to address the control issues
Suggested answer: B

Explanation:

When significant control issues are identified during a consulting engagement, it is the responsibility of the chief audit executive to ensure that these issues are communicated to senior management and the board. This ensures that the organization is aware of the risks and can take corrective action. Consulting engagements should not overshadow the priority of addressing critical control issues that may affect the organization's risk profile.

Reference:

'International Standards for the Professional Practice of Internal Auditing' (IIA Standards)

'Internal Auditing: Assurance & Advisory Services' (The Institute of Internal Auditors)

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asked 18/09/2024
Mauro Daniele
37 questions
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