IIA Exam IIA-CIA-Part2 Topic 3 Question 84 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 84
Topic #: 3

During a review of the organization's waste management processes, the internal auditor discovered that wastewater is being disposed of inappropriately. The auditor's recommendations, suggested to mitigate the risk of regulatory sanctions and reputational damages, were accepted and timelines for implementation were agreed. However, during the internal audit activity's periodic follow-up exercise, management indicated that the recommendation was too expensive to implement and the current disposal method has been cost-effective. What should the chief audit executive do in this case?

ANothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.

BContact the regulatory agency responsible for monitoring such matters in order to convince management to implement the recommendations.

CConvene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

DHighlight the current exposure to the external auditors so they too can highlight the issue and further pressure management to address the concern.

Show Suggested Answer

Suggested Answer: C

by Venita at Aug 02, 2024, 05:22 PM

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Mignon

2 months ago

I'm split between options C and D, but leaning more towards C. Putting the pressure on senior management directly is probably the best way to get them to take this seriously. Though the external auditors might be able to add some extra oomph to the argument. Decisions, decisions...

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Willow

1 months ago

Yeah, involving the external auditors could definitely add some extra pressure on management to take action.

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Weldon

1 months ago

I agree, putting the pressure on senior management directly might be the most effective way to address the issue.

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Gianna

2 months ago

I think convening a meeting with senior management is a good idea. It's important to discuss the potential impact on the organization.

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Selene

3 months ago

Ah, option A - the classic 'do nothing' approach. Because who needs a conscience when you've got a paycheck, right? Nah, I'm just kidding. This one's a no-brainer, we can't let them skimp on proper waste disposal. Gotta keep the environment clean, even if it costs a few bucks.

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Kayleigh

2 months ago

D) Highlight the current exposure to the external auditors so they too can highlight the issue and further pressure management to address the concern.

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Reiko

2 months ago

C) Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

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Nathan

2 months ago

A) Nothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.

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Jaime

3 months ago

Option D sounds like the easiest route, but I'm not a fan of throwing the external auditors under the bus. If I were the chief audit executive, I'd want to handle this one myself. Gotta take some responsibility, you know?

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Emile

1 months ago

C) Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

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Omer

1 months ago

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Mi

1 months ago

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Maxima

1 months ago

C) Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

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Isidra

2 months ago

C) Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

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Alberto

2 months ago

A) Nothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.

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Matthew

2 months ago

A) Nothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.

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Vincent

3 months ago

I'm leaning towards option B. Contacting the regulatory agency might be the kick in the pants management needs to take this seriously. Though I do worry it could come back to bite us as whistleblowers. Tough call.

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Donte

3 months ago

But what if management still refuses to implement the recommendations? Shouldn't the external auditors be informed?

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Elly

3 months ago

Hmm, I'd say option C is the way to go. Convening a meeting with senior management to discuss the issue and potential impact is the best approach. Can't let them just ignore a serious risk like that.

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Lettie

2 months ago

Exactly, it's important to address these issues before they escalate and cause harm to the organization.

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Michel

2 months ago

If they don't realize the potential impact, it could lead to even bigger problems down the line.

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Merilyn

3 months ago

I agree, bringing the issue to their attention in a meeting is crucial to ensure they take action.

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Alpha

3 months ago

Option C is definitely the best choice. Senior management needs to understand the seriousness of the situation.

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Lauryn

4 months ago

I agree with Kristeen. It's important to discuss the issue and potential impact on the organization.

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Kristeen

4 months ago

I think the chief audit executive should convene a meeting with senior management.

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