IIA Exam IIA-CIA-Part2 Topic 5 Question 56 Discussion

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

Question #: 56
Topic #: 5

The following is a list of major findings in the executive summary report for an audit of the contract management process

- Noncompliance with contract provisions requiring vendors to obtain insurance policies with indemnity value of not less than $1 million

- Compliance with contract obligations and deliverables is not monitored

- No contract agreement with five vendors providing core services

Which of the following is an appropriate conclusion that can be drawn from these findings?

AThese are weaknesses resulting from a lack of a documented contracting policy

BSubstandard service delivery by vendors may not be detected

CManagement should expedite actions to rectify the observations identified

DThe internal controls guiding contract management are not operating effectively

Show Suggested Answer

Suggested Answer: C

by Dorothy at Feb 24, 2023, 06:59 AM

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5 days ago

But could it also be D, indicating ineffective internal controls?

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6 days ago

I agree with Matthew, management needs to take action.

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7 days ago

I think the appropriate conclusion is C.

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