10. Communicating Results and Monitoring Progress Flashcards
(21 cards)
What are the purposes of engagement communications?
Inform
Persuade
Get results
List the parties involved in a consulting engagement.
The internal auditor providing the advice
The engagement client who sought and received the advice
List the parties involved in an assurance engagement.
The internal auditor
The process owner or auditee who is directly involved in the subject matter of the assessment
The user to whom the assessment is addressed
Internal auditors’ observations and recommendations are based on what four factors?
Criteria
Condition
Cause
Effect
Background information is generally provided in the final communication. Examples include but are not limited to
Activities reviewed and the status of observations
Recommendations from prior reports (can be used as a follow-up source)
Conclusions
Summaries of the communication’s content
The final engagement communication must include the engagement’s
Objectives, scope, and results.
An opinion must be supported by information that is
Sufficient
Reliable
Relevant
Useful
Why should management action plans be included in audit reports?
They are often the most referenced segment of the report.
What are the seven qualitative requirements of engagement communications?
Accurate
Objective
Clear
Concise
Constructive
Complete
Timely
Indicating that engagements are “conducted in conformance with the International Standards for the Professional Practice of Internal Auditing” is appropriate only if
Supported by the results of the quality assurance and improvement program.
An engagement opinion considers a _____[1]_____ engagement, whereas an overall opinion considers _____[2]_____ engagements.
1-Single
2-Multiple
When nonconformance with the Code of Ethics or the Standards impacts a specific engagement, communication of the results must disclose the
Principle(s) or rule(s) of conduct of the Code of Ethics or Standard(s) with which full conformance was not achieved
Reason(s) for nonconformance
Impact of nonconformance on the engagement and the communicated engagement results
What is the primary purpose of an exit conference?
To present audit findings (i.e., observations, conclusions, recommendations).
The __________ is responsible for reviewing and approving the final engagement communication.
Chief audit executive.
Absent any legal requirement, prior to releasing engagement results to parties outside the organization the chief audit executive must
Assess the potential risk to the organization,
Consult with senior management and/or legal counsel as appropriate, and
Control dissemination by restricting the use of the results.
The chief audit executive is expected to have an understanding of the ____[1]____ structure, ____[2]____ protocols, and ____[3]____ of senior management and the board regarding engagement communications.
1.Organizational
2.Communication
3.Expectations
Who determines which communication format, verbal or written, to use for each recipient?
The CAE.
When the chief audit executive concludes that management has accepted a level of risk that may be unacceptable to the organization, the chief audit executive must discuss the matter with
Senior management.
If after discussing a matter with senior management, the chief audit executive determines the matter has not been resolved, then the chief audit executive must communicate the matter to the
Board
The types of risks that may be considered to be beyond the organization’s tolerance level include
Those that may harm the organization’s reputation
Those that could harm people
Those that would result in significant regulatory fines, limitations on business conduct, or other financial or contractual penalties
Material misstatements
Fraud or other illegal acts
Significant impediments to achieving strategic objectives
The chief audit executive’s communication to the engagement client about the timing of the audit and resources needed represents a
Preliminary communication.
