Discuss CIMA CIMAPRA19-P03-1 Exam Topic 4 Question 36

The internal audit department has just completed an investigation into the HR department's procedures relating to new staff appointments The head of HR is unhappy with the draft report prepared by the lead internal auditor The report lists several cases in which appointments were made despite the fact that one or more of the entity's formal procedures were not followed

The head of HR has complained that the internal auditor's comments do not allow for the fact that the HR department's staff members are often very busy and do not always have time to conduct every check.

The internal auditor's comments also reflect a failure to complete documents None of the omissions have led to the appointment of an unsuitable member of staff

Which TWO of the following statements reflect an appropriate response by the board of directors to this report?

AIgnoring a compliance error altogether may undermine the control environment

BThe procedures should be removed if the HR department staff believe that they are unnecessary

CThe board should be seen to support the internal audit

DThe errors are immaterial because they did not lead to an inappropriate appointment

EThe members of staff responsible for these omissions should be subjected to disciplinary action

Suggested Answer: C, E

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16 comments · newest first

Devorah 11 months ago

Removing procedures just because they're seen as unnecessary is risky.

Evangelina 11 months ago

HR is swamped, they can't check everything all the time!

Shawnna 11 months ago

But did those errors really matter if no bad hires were made?

Marcelle 12 months ago

Totally agree, the board should back the internal audit!

Leanora 12 months ago

Ignoring compliance errors is a bad move.

Denna 1 year ago

I’m not convinced that the errors are immaterial just because they didn’t lead to a bad hire. I think that could be a slippery slope, so I’d lean away from option D.

Carole 1 year ago

I practiced a similar question where the focus was on accountability. I think option C is the right choice because the board needs to back the internal audit team.

Shayne 1 year ago

I'm a bit unsure about the best response here. I feel like the board should definitely support the internal audit, but I can't recall if that was option C or D.

Raylene 1 year ago

I remember we discussed how ignoring compliance errors can weaken the control environment, so I think option A makes sense.

Juliana 1 year ago

Ah, this is a classic dilemma. The board needs to uphold the control environment, but also be sensitive to the practical realities faced by the HR team. I think the best approach is to work with HR to streamline the procedures and provide additional support, rather than jumping straight to discipline.

Robt 1 year ago

This is a tricky balancing act. I don't want to just dismiss the compliance issues, but the key is finding a response that addresses the root causes without being overly punitive. I'll need to think carefully about the implications of each option.

Royce 1 year ago

Okay, I think I've got a handle on this. The board should support the internal audit to maintain credibility, but also recognize the workload challenges faced by HR. Removing unnecessary procedures could be a pragmatic solution.

Kami 1 year ago

This seems like a tricky one. The key is to balance the need for compliance with the practical realities of a busy HR department. I'll need to carefully consider the options and think about the broader implications for the control environment.

Freeman 1 year ago

Hmm, I'm a bit unsure here. On the one hand, ignoring the compliance errors could undermine the controls, but disciplining staff might be too harsh if the appointments were still appropriate. I'll need to weigh the pros and cons of each option.

Yolando 1 year ago

This seems like a straightforward question about sandbox management. I think the key is to find the most efficient and cost-effective way to handle the weekly training sessions.

Cruz 1 year ago

This seems like a straightforward question about the maximum number of agents supported for a specific server type. I'll need to carefully read the details provided and think through the possible options.

CIMAPRA19-P03-1 Exam - Topic 4 Question 36 Discussion