Discover which item in preliminary audit communication—condition, audit objective, scope, or observation rating—best supports management in developing action plans. Essential for IIA-CIA-Part2 exam success.
Table of Contents
Question
Which of the following items, included in the preliminary audit communication, would be most useful for management to formulate action plans in response to audit recommendations?
A. A condition.
B. An audit objective.
C. An audit scope.
D. An observation rating.
Answer
Which Item in Preliminary Audit Communication is Most Useful for Management to Formulate Action Plans?
Correct Answer: A. A condition.
Explanation
In the context of an audit, a condition refers to the factual situation found during the audit process, representing what exists compared to what should exist according to standards or expectations. Conditions highlight discrepancies or problems that need to be addressed. By identifying the specific condition observed during the audit, management gains a clear understanding of where issues lie, which is critical for developing targeted and effective action plans to resolve those issues.
Here’s why each option fares as follows:
A. A condition (Correct): A condition directly describes the problem or deficiency observed during the audit. This information is crucial because management needs to know the actual state of affairs to craft an appropriate response or corrective action. Without a clear understanding of the problem (condition), management cannot effectively design remedial measures.
B. An audit objective: An audit objective outlines what the audit aims to achieve but does not provide specific details on the issues uncovered. While important for guiding the audit process, it doesn’t offer actionable information for management to respond to audit findings.
C. An audit scope: The audit scope defines the boundaries of the audit, such as what areas were reviewed and the extent of testing. However, the scope does not pinpoint specific problems or areas needing improvement, making it less useful for formulating action plans.
D. An observation rating: Observation ratings classify the severity of findings but do not offer the detailed, actionable insight needed for management to create specific action plans. While ratings help prioritize issues, they do not describe the nature of the problem as clearly as the condition does.
Therefore, “A condition” is the most critical element in the preliminary audit communication for helping management formulate specific and effective action plans.
IIA-CIA-Part2 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the IIA-CIA-Part2 exam and earn IIA-CIA-Part2 certification.