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IIA Exam IIA-CIA-Part2 Topic 7 Question 81 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam
Question #: 81
Topic #: 7
[All IIA-CIA-Part2 Questions]

An audit observation states the following:

"Despite the rules of the organization there is no approved credit risk management policy in the subsidiary. The subsidiary is concluding contacts with clients who have very high credit ratings. The internal audit team tested 50 contacts and 17 showed clients with a poor credit history"

Which of the following components are missing in the observation?

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Suggested Answer: D

by Mirta at Jul 05, 2024, 01:52 AM

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Trinidad
2 months ago
The subsidiary must have been using a magic 8-ball to determine credit worthiness. No wonder the internal audit team was so confused!
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Maia
2 months ago
This is a no-brainer, the answer is D) Criteria and Condition. The Criteria used to determine the credit ratings are not specified, and the Condition of the subsidiary's lack of an approved credit risk management policy is not clearly stated.
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Caitlin
2 months ago
It's important to have both Criteria and Condition in audit observations.
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Paola
2 months ago
I agree, the observation lacks clear Criteria and Condition.
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Dyan
2 months ago
I think the missing components are D) Criteria and Condition.
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Annmarie
2 months ago
Hold on, I think the answer is C) Condition and Cause. The observation doesn't explain the Condition that led to the lack of an approved credit risk management policy, and the Cause of the poor credit history is also missing.
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Josephine
3 months ago
I disagree, I believe the missing components are Criteria and Condition. The observation doesn't specify the Criteria used to evaluate the credit ratings, and the Condition is not clearly defined either.
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Gene
2 months ago
User 3: I agree with Gene, it seems like Criteria and Condition are missing.
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Vicente
2 months ago
User3: I disagree, I think it's Criteria and Condition.
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Francoise
2 months ago
User 2: I disagree, I believe it's Effect and Criteria.
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Honey
2 months ago
User 1: I think the missing components are Cause and Effect.
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Staci
2 months ago
User2: I believe it's Effect and Criteria.
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Malcom
2 months ago
User1: I think the missing components are Cause and Effect.
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Rozella
3 months ago
Ah, this is a tricky one. I think the missing components are Condition and Cause. The observation clearly states the Condition, but the Cause is not clearly identified.
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Meaghan
1 months ago
I'm not sure, but I think it might be Criteria and Condition that are missing.
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Tawna
2 months ago
I believe the missing components are Cause and Effect.
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Alida
2 months ago
I think it's important to have both Condition and Cause in the observation for a complete analysis.
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Avery
2 months ago
I agree, the observation is missing the Cause component.
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Juan
3 months ago
I think it could also be Effect and Criteria that are missing.
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Arlean
3 months ago
I agree, the Cause is missing in the observation.
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Shalon
3 months ago
I believe the missing components are criteria and condition, as they are essential for a thorough audit observation.
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Sylvie
3 months ago
I agree with Corazon, cause and effect are definitely missing in the observation.
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Corazon
3 months ago
I think the missing components are cause and effect.
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