Question: 1
Which of the following individuals should normally not receive a final engagement communication related to a review of the purchasing cycle?
Question: 2
Regarding item D, which of the following is true?
i. The deviation rate is under 4%; therefore, the observation need not be reported to management and the board.
ii. The internal auditor should review appropriate regulations and possibly obtain legal counsel's opinion about the observation prior to including it in the final engagement communication.
iii. The internal auditor should report the observation to the vice president who approved the loans and ask for a follow-up communication during the engagement scheduled next year. No further action need be taken at this time.
IV. Review a plan by the loan committee to prevent such occurrences in the future and include a summary and analysis of the plan in the final engagement communication.
Question: 3
The most important message for the internal auditor to convey to senior management is
Question: 4
Regarding the unbudgeted funds for the purchase of a software package, the internal auditor should
Question: 5
In which of the following situations have the internal auditors appropriately transmitted their engagement communication?
Situation 1 -- The engagement team is behind schedule so the in-charge internal auditor decides to present the final engagement communication orally to the area's management in place of a written report.
Situation 2 -- The area manager will be on vacation when the final engagement communication is expected to be issued. The in-charge internal auditor presents orally several items that need immediate corrective action.
Situation 3 -- During inspection of inventory, an internal auditor observes water from a leaking section of the roof dripping on items stored beneath it. These items are susceptible to water damage. The internal auditor tells the plant manager who has the items moved and the roof repaired. The internal auditor does not mention this item in the final written engagement communication.
Situation 4 -- The engagement team found only one minor problem during the engagement. This problem was pointed out to the manager of the area who took steps to correct it before the engagement was finished. The in-charge internal auditor decides that, because management need take no further corrective action, no written engagement communication for this engagement is necessary.
