IIA Exam IIA-CRMA Topic 8 Question 66 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 66
Topic #: 8

If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

ATerminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.

BTerminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

CRefer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

DSeek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

Show Suggested Answer

Suggested Answer: B

by Audra at Oct 18, 2023, 11:15 PM

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Evangelina

3 months ago

This is why auditors need a good sense of humor. Imagine the client being like 'Nope, not doing that!' and the auditor just breaking out the jazz hands. 'Well, okay then!'

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Chun

1 months ago

D) Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

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Peggy

1 months ago

C) Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

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Alaine

2 months ago

A) Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

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Lili

3 months ago

If I was the client, I'd be a bit miffed if the IAA just steamrolled ahead without listening to my concerns. Gotta keep that communication open!

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Giovanna

2 months ago

I agree, communication is key in these situations to maintain a good client-audit relationship.

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Ocie

2 months ago

C) Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

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Tegan

2 months ago

B) Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

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Chanel

3 months ago

Seeking approval from senior management or the board is a smart move. An outside perspective could really help resolve the dispute in a constructive way.

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Blondell

3 months ago

I like the idea of trying to find a substitute function that doesn't impede the audit or the client relationship. That shows some flexibility on the IAA's part.

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Selma

3 months ago

But what if the client still disagrees? Shouldn't we seek approval from senior management or the board for mediation?

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Marsha

3 months ago

Terminating the entire audit engagement just because the client disputes one aspect seems a bit extreme. Referring them to the approved audit plan is a good first step to clarify the scope.

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Leigha

3 months ago

D) Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

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Delbert

3 months ago

C) Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

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Rasheeda

3 months ago

B) Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

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Effie

4 months ago

I agree with Stefany. It's important to show the client the designated areas for audit in the current time period.

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Stefany

4 months ago

I think the most appropriate way is to refer the client to the IAA's charter and the approved yearly audit plan.

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