IIA IIA-CIA-Part2 Quiz 194 Topic 4 Questions 966-970

Question: 1

A major deficiency in paragraph #5 related to the completeness of the engagement communication is that

AThere is no indication of the potential cause of the problem.

BIt does not contain criteria by which the concept of 'excessive inventory' is judged.

CIt does not adequately describe the potential effect of the conditions noted.

DThe recommendations are not required and are not appropriate given the nature of the problem identified.

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Question: 2

A major writing problem in paragraph #5 is: The use of potentially emotional words such as "conservatism" of local management.The presentation of observations before recommendations. The engagement communication would have more impact if recommendations are made before the observations are discussed.The specific identification of "component parts" maybe offensive to the personnel responsible for those parts and may reflect negatively on them.The reference to other parts of the engagement communication citing excessive inventory write-downs for obsolescence is not appropriate. If there is a problem, it should all be discussed within the context of the specific engagement observation.

AA The internal auditor should avoid using emotionally charged words because they might provoke an unexpected, negative reaction from the engagement client. The actions of divisional management could have been described adequately in neutral terms.
Observations and Recommendations

BA The internal auditor should avoid using emotionally charged words because they might provoke an unexpected, negative reaction from the engagement client. The actions of divisional management could have been described adequately in neutral terms.
Observations and Recommendations

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Question: 3

A major deficiency in paragraph #6 related to the completeness of the engagement communication is that the

AFactual support for the observation is not given.

BCause of the problem is not defined.

CRisk is presented in an 'over-dramatic' fashion.

DRecommendation is incomplete.

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Question: 4

A major deficiency in paragraph #7 related to the completeness of the engagement communication is

ANo separate section adequately discusses the risks associated with the observation.

BThe recommendation does not follow from the observation. The recommendation could have been reached without any observation.

CThe condition for the observation is not clearly explained.

DThe reference to other parts of the engagement communication citing excessive inventory write-downs for obsolescence is not appropriate. If there is a problem, it should all be discussed within the context of the specific observation.

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Question: 5

A major deficiency in paragraph #8 is

AThat the nature of the follow-up action is inappropriate.

BThat the observations were not discussed with division management before being presented to upper management.

CThat the cost savings mentioned are not supported in the engagement communication.

DAll of the answers are correct.

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IIA IIA-CIA-Part2 Quiz:194 Topic:4 Questions:966-970