Exam IIA-CIA-Part2 topic 5 question 335 discussion

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

Question #: 335
Topic #: 5

An audit observation states the following:

"Internal policy prohibits employees from entering into contracts with financial obligations without proper approval. A project manager signed a change to an important service agreement without obtaining the proper approval. As a result: the organization is receiving $5,000 per month less for its services."

Which of the following should be added to the observation?

A. The reason for not following the internal policy.
B. A description of what constitutes proper approval.
C. The annual impact of the changed agreement on cash flows.
D. Details regarding when the change to the agreement was signed.

Show Suggested Answer

Suggested Answer: A 🗳️

by emtofid at Sept. 16, 2024, 7:53 p.m.

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Elvoo

3 months ago

WHY NOT B?

upvoted 1 times

Elvoo

2 months ago

By adding a description of what constitutes proper approval, the observation clearly outlines the expected procedures and highlights the deviation, thereby facilitating corrective actions.

upvoted 1 times

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emtofid

4 months ago

Selected Answer: A

Cause – Why did it happen A: The reason for not following the internal policy would

upvoted 3 times

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Exam IIA-CIA-Part2 topic 5 question 335 discussion

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Elvoo

Elvoo

emtofid

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