IIA-ACCA Exam - Topic 9 Question 88 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 88
Topic #: 9

The board has requested that the internal audit activity be involved in all phases of the organization's outsourcing of its network management. During which of the following stages is the internal auditor most likely to verify that the organization's right-to-audit clause is drafted effectively?

AImplementation and transition phase.

BMonitoring and reporting phase

CDecision-making and business-case phase.

DTendering and contracting phase.

Show Suggested Answer

Suggested Answer: D

by Elly at Sep 19, 2024, 08:58 AM

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Dalene

4 months ago

I’m surprised they’d wait until the contract phase to check that. Sounds risky!

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Antione

4 months ago

Wait, are we sure it’s not the Monitoring and reporting phase? Seems important too.

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Verona

4 months ago

I agree, the right-to-audit clause needs to be solid before signing anything!

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Na

5 months ago

I think it’s more about the Implementation and transition phase.

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Markus

5 months ago

Definitely during the Tendering and contracting phase.

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Eura

5 months ago

I practiced a similar question, and I think the monitoring phase might be where they check if the clause is being followed, but I’m not confident about the drafting part.

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Kayleigh

5 months ago

I feel like the decision-making phase could also be important since that's when they decide what terms to include in the contracts. But I lean towards the tendering phase.

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Lai

5 months ago

I'm not entirely sure, but I remember something about the implementation phase being crucial for ensuring compliance. Maybe that's where it gets checked too?

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Elli

6 months ago

I think the right-to-audit clause would be most relevant during the tendering and contracting phase, right? That's when the contracts are being finalized.

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Eve

6 months ago

Based on my understanding, the right-to-audit clause is a critical part of the contract, so I think the answer is most likely D - Tendering and contracting phase. That's when the internal auditor would want to ensure that clause is drafted effectively to protect the organization's interests.

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Alisha

6 months ago

I'm a bit confused by this question. The options all seem relevant to the internal auditor's involvement in the outsourcing process, but I'm not sure which one specifically addresses verifying the right-to-audit clause. I'll have to review my notes on this topic again before deciding.

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Jesusita

6 months ago

Okay, let me walk through this step-by-step. The key is that the question is asking about the stage where the internal auditor is most likely to verify the right-to-audit clause. That suggests to me it's probably during the contract negotiation, so I'm leaning towards D as the answer.

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Nancey

6 months ago

Hmm, I'm a little unsure about this one. The question is asking specifically about verifying the right-to-audit clause, so I'm not sure if the implementation or monitoring phases would be more relevant. I'll have to think this through carefully.

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Loren

6 months ago

This seems like a pretty straightforward question about the internal auditor's role in the outsourcing process. I'm pretty confident the answer is D - Tendering and contracting phase.

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Valentin

6 months ago

Hmm, this seems like a pretty straightforward question about the capabilities of a MID Server. I'll need to think carefully about the options and what I know about MID Server functionality.

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Janna

1 year ago

Wait, we're supposed to audit the auditors now? This is getting a little meta, don't you think?

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Blossom

1 year ago

D) Tendering and contracting phase. Duh, that's when the lawyers have their field day. Can't leave that right-to-audit clause up to chance.

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Diane

1 year ago

D) Tendering and contracting phase. Duh, that's when the lawyers have their field day. Can't leave that right-to-audit clause up to chance.

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Renea

1 year ago

C) Decision-making and business-case phase.

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Sabra

1 year ago

B) Monitoring and reporting phase

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Jules

1 year ago

A) Implementation and transition phase.

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Pete

1 year ago

B) Monitoring and reporting phase. Because who doesn't love a good audit, right? The more audits, the better!

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Caprice

1 year ago

C) Decision-making and business-case phase.

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Idella

1 year ago

B) Monitoring and reporting phase.

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Kristin

1 year ago

A) Implementation and transition phase.

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Lawrence

1 year ago

I'm going with C) Decision-making and business-case phase. That's when you really need to dig into the details and ensure the organization's interests are protected.

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