Unit 9 - COMMUNICATING RESULTS AND MONITORING

Question 1

What are the purposes of engagement communications?

Answer 1

Inform
Persuade
Get results

Question 2

The chief audit executive’s communication to the engagement client about the timing of the audit and resources needed represents a

Answer 2

Preliminary communication.

Question 3

Internal auditors’ observation and recommendations are based on what four factors?

Answer 3

Criteria
Condition
Cause
Effect

Question 4

The final engagement communication must include the engagement’s

Answer 4

Objectives, scope, and results.

Question 5

What are the seven qualitative requirements of engagement communications?

Answer 5

Accurate
Objective
Clear
Concise
Constructive
Complete
Timely

Question 6

An engagement opinion considers a (1) __________ engagement, whereas an overall opinion considers (2) __________ engagements.

Answer 6

single

multiple

Question 7

What is the primary purpose of an exit conference?

Answer 7

To present audit findings (i.e., observations, conclusions, recommendations).

Question 8

Absent any legal requirement, prior to releasing engagement results to parties outside the organization the chief audit executive must

Answer 8

(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.

Question 9

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

Answer 9

Senior management.

Question 10

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

Answer 10

Board.

Question 11

What are the minimum requirements of the final report?

Answer 11

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.

Question 12

The person reviewing a report should focus on which elements?

Answer 12

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.

Question 13

What must be done if there is an error or omission in a final report?

Answer 13

In cases where the final report contains a significant error or omission, the CAE must issue an amended report highlighting the corrected information.

Question 14

What is communicatedin interim reports?

Answer 14

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)

Question 15

What are the objectivesof the exit conference?

Answer 15

Confirm that the client has understood the report

Develop action plans

Question 16

To whom is thefinal report distributed?

Answer 16

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.

Question 17

What responsibility does the IAA have to monitor engagement outcomes?

Answer 17

The internal auditor is required to monitor how the engagement client addresses any recommendations or issues that were solved.

Question 18

What factors are considered when determining the appropriate method of following up?

Answer 18

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.