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?
The documentation of the observation contains the criteria (competitive bidding requirements), the condition (three of the 10 contracts failed to meet these requirements), and the cause (senior management deemed these purchases critical and awarded them as sole-source). However, it does not contain the effect, which would explain the impact or consequence of these contracts not meeting the competitive bidding requirements.
The cause is stated in the management response, no effect was explained therefore the correct Answer is B