Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

IIA Exam IIA-ACCA Topic 10 Question 83 Discussion

Actual exam question for IIA's IIA-ACCA exam
Question #: 83
Topic #: 10
[All IIA-ACCA Questions]

An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

Show Suggested Answer Hide Answer
Suggested Answer: B

Contribute your Thoughts:

Wynell
3 months ago
I heard the board is also considering outsourcing the internal audit function to a team of raccoons. They're known for their keen eye for detail and impressive dumpster-diving skills.
upvoted 0 times
Hassie
1 months ago
I heard the board is also considering outsourcing the internal audit function to a team of raccoons. They're known for their keen eye for detail and impressive dumpster-diving skills.
upvoted 0 times
...
Malcom
2 months ago
C) Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.
upvoted 0 times
...
Vilma
2 months ago
A) Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
upvoted 0 times
...
...
Dick
3 months ago
Option A is a bit concerning. Removing lower-risk engagements from the audit plan could leave the organization vulnerable to undetected issues.
upvoted 0 times
...
Malika
3 months ago
Option B is a good idea, but it shouldn't be the only step. The board should also get the chief audit executive's input to fully understand the implications.
upvoted 0 times
Gayla
2 months ago
Option B is a good idea, but it shouldn't be the only step. The board should also get the chief audit executive's input to fully understand the implications.
upvoted 0 times
...
Aleshia
2 months ago
C) Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.
upvoted 0 times
...
Kerrie
3 months ago
B) Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
upvoted 0 times
...
Willetta
3 months ago
A) Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
upvoted 0 times
...
...
Catalina
3 months ago
I'm not sure about Option D. Reducing the compensation of the audit staff doesn't seem like the right way to address the budget issues. That could lead to low morale and high turnover.
upvoted 0 times
Alease
2 months ago
B) Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
upvoted 0 times
...
Erasmo
3 months ago
A) Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
upvoted 0 times
...
...
Kelvin
3 months ago
Option C is clearly the most appropriate action. The chief audit executive is best positioned to assess the impact of budget reductions on the internal audit activity's ability to execute its responsibilities effectively.
upvoted 0 times
...
Frederica
3 months ago
I believe option B is also important. Getting input from stakeholders can provide valuable insights on the potential impacts of reducing the scope of the internal audit plan.
upvoted 0 times
...
Myra
3 months ago
I agree with Wendell. The chief audit executive should assess the impact of budget reductions on the internal audit activity.
upvoted 0 times
...
Wendell
4 months ago
I think option C is the most appropriate.
upvoted 0 times
...

Save Cancel