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Exam IIA-CIA-Part2 All QuestionsBrowse all questions from this exam

Question 206

Which of the following statements is true regarding the communication of audit engagement observations?

Criteria, condition, cause, and effect must be communicated for material observations only

Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only

Criteria, condition, cause, and effect must be communicated for all engagement observations.

Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.

Correct Answer: C

Criteria, condition, cause, and effect must be communicated for all engagement observations. This ensures comprehensive communication and documentation, allowing for a complete understanding and assessment of the observations by the stakeholders.

Discussion

cotoOption: C

even if the observations are insignificant, and you have compensating controls, you would have to explain this, so C is the other best answer

AlenaAOption: C

These are the attributes of observations and recommendations: criteria, condition, cause and effect. As soon there are any observations these attributes have to be mentioned.

Kate

Can you give the rationale on this one?