Unit 9 - COMMUNICATING RESULTS AND MONITORING Flashcards
What are the purposes of engagement communications?
Inform
Persuade
Get results
The chief audit executive’s communication to the engagement client about the timing of the audit and resources needed represents a
Preliminary communication.
Internal auditors’ observation and recommendations are based on what four factors?
Criteria
Condition
Cause
Effect
The final engagement communication must include the engagement’s
Objectives, scope, and results.
What are the seven qualitative requirements of engagement communications?
Accurate Objective Clear Concise Constructive Complete Timely
An engagement opinion considers a (1) __________ engagement, whereas an overall opinion considers (2) __________ engagements.
single
multiple
What is the primary purpose of an exit conference?
To present audit findings (i.e., observations, conclusions, recommendations).
Absent any legal requirement, prior to releasing engagement results to parties outside the organization the chief audit executive must
(1) assess the potential risk to the organization, (2) consult with senior management and/or legal counsel as appropriate, and (3) control dissemination by restricting the use of the results.
When the chief audit executive concludes that management has accepted a level of risk that may be unacceptable to the organization, the chief audit executive must discuss the matter with
Senior management.
If after discussing a matter with senior management, the chief audit executive determines the matter has not been resolved, then the chief audit executive must communicate the matter to the
Board.
What are the minimum requirements of the final report?
At minimum, the final report must contain the purpose, scope, and results of the engagement.
Also, where appropriate, the report should contain the internal auditor’s overall opinion.
The person reviewing a report should focus on which elements?
The person reviewing the reports should focus on:
Readability refers to the clarity of the writing.
Correctness refers to accurate grammar and punctuation.
Appropriateness refers to the tactfulness and objectivity of the report and the correct balance given to major and minor observations.
What must be done if there is an error or omission in a final report?
In cases where the final report contains a significant error or omission, the CAE must issue an amended report highlighting the corrected information.
What is communicatedin interim reports?
Information that requires immediate action
A change in the scope of the engagement
The status of the project (if it is a long-term operation)
What are the objectivesof the exit conference?
Confirm that the client has understood the report
Develop action plans
To whom is thefinal report distributed?
The CAE should distribute the final engagement communications to those members of the organization who will give the results all due consideration. This distribution list will usually include the manager in charge of the audited function as well as any other managers or individuals who are in a position to enact the recommended changes.
What responsibility does the IAA have to monitor engagement outcomes?
The internal auditor is required to monitor how the engagement client addresses any recommendations or issues that were solved.
What factors are considered when determining the appropriate method of following up?
Scheduling follow-up work for audit engagements should be based on three factors:
The risk and exposure involved.
Degree of difficulty.
Significance of timing in implementing corrective action.
