IIA Exam IIA-IAP Topic 4 Question 11 Discussion

Actual exam question for IIA's IIA-IAP exam

Question #: 11
Topic #: 4

Which of the following statements is appropriate to include in a high-quality internal audit engagement communication?

AThe internal audit team conducted a review of the financial reporting process prior to year-end. The overall findings have been provided for management's consideration prior to the completion of the organization's annual external financial audit.

BThe internal audit team noted numerous weaknesses in the organization's internal controls over financial reporting. The team recommends that management determine the root cause of the weaknesses.

CThe internal audit team conducted an engagement under the assumption that significant control weaknesses were likely. The purpose of the review was to uncover those weaknesses.

Show Suggested Answer

Suggested Answer: A

Comprehensive and Detailed Step-by-Step Explanation:

Reference to IIA Standards:

Standard 2420 - Quality of Communications: Reports should be accurate, objective, clear, concise, constructive, and complete.

Findings must be presented factually and free from assumptions or bias.

Reasoning:

Option A is correct because it presents the purpose, timing, and findings in a clear and professional manner, allowing management to take informed action.

Option B lacks balance and shifts responsibility for identifying root causes to management without actionable recommendations.

Option C includes a biased assumption, undermining the report's objectivity and professionalism.

Impact of Quality Communication:

High-quality communications support decision-making by presenting findings and recommendations constructively.

by Sunshine at May 03, 2025, 12:53 AM

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Marshall

30 days ago

Option B gets my vote. Being direct about the weaknesses found and calling for root cause analysis shows the internal audit team is doing its job effectively.

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Bettye

1 months ago

Ha! Option C reminds me of that time our internal auditor showed up to the office with a magnifying glass and a conspiracy theory notebook. Talk about setting the tone...

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Shalon

5 days ago

Ha! Option C reminds me of that time our internal auditor showed up to the office with a magnifying glass and a conspiracy theory notebook. Talk about setting the tone...

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Lili

8 days ago

B) The internal audit team noted numerous weaknesses in the organization's internal controls over financial reporting. The team recommends that management determine the root cause of the weaknesses.

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Shad

16 days ago

A) The internal audit team conducted a review of the financial reporting process prior to year-end. The overall findings have been provided for management's consideration prior to the completion of the organization's annual external financial audit.

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Aliza

1 months ago

I'm not sure Option C is the best choice. Assuming significant weaknesses before the review could introduce bias and undermine the objectivity of the internal audit process.

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Katheryn

1 months ago

I would go with Option A. It's important to communicate that the internal audit findings were provided to management prior to the external audit, which demonstrates coordination and proactive communication.

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Viki

20 days ago

User 2

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Lamonica

22 days ago

User 1

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Katie

2 months ago

I see your point, Reena. Option B does provide a clear recommendation for improvement.

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Reena

2 months ago

I disagree, I believe option B is better because it highlights the need for management to address weaknesses.

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Ressie

2 months ago

I agree with Mari, option A shows a positive approach.

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Izetta

2 months ago

Option B seems the most appropriate. Uncovering control weaknesses is a key objective of internal audit, and it's important to highlight the need for management to address root causes.

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