Exam IIA-CIA-Part2 topic 5 question 115 discussion

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

Question #: 115
Topic #: 5

The final engagement communication contains the following observation:

"The internal auditor discovered that three of the 10 contracts reviewed failed to meet the organization's competitive bidding requirements. Management explained that senior management deemed these purchases to be critical and awarded them as sole-source."

Which of the following components is missing in the documentation of the observation?

A. Criteria.
B. Effect.
C. Condition.
D. Cause.

Show Suggested Answer

Suggested Answer: B 🗳️

by 8aaab27 at July 17, 2024, 12:42 p.m.

Comments

Submit Cancel

emtofid

11 months, 2 weeks ago

Selected Answer: B

Criteria: The observation refers to competitive bidding requirements, which likely serve as the criteria. Condition: The condition is clearly stated as "three of the 10 contracts reviewed failed to meet the organization's competitive bidding requirements." Cause: The cause is given as "senior management deemed these purchases to be critical and awarded them as sole-source." Effect: The observation does not explain the impact or consequence of not following the competitive bidding requirements, which would describe the effect of this issue on the organization (e.g., financial loss, lack of transparency, or potential compliance risks).

upvoted 1 times

...

8aaab27

1 year, 1 month ago

Selected Answer: B

The cause is stated in the management response, no effect was explained therefore the correct Answer is B

upvoted 2 times

...