IIA Exam IIA-CIA-Part2 Topic 8 Question 99 Discussion

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

Question #: 99
Topic #: 8

The internal audit activity of an insurance company is reviewing six of the company's 11 branches. During the review of the fourth branch that was selected, the internal audit team discovered control breaches that could result in regulatory sanctions if not addressed. How should the internal audit team proceed?

ACommunicate immediately to the relevant regulatory agency the information regarding the company's control breaches along with details of recommended corrective actions to address the issue.

BComplete the branch reviews, ensure that the issue and impact are adequately detailed in the audit report, hold an exit meeting to discuss the issue with branch management, and provide recommendations for corrective actions.

CHave a discussion with branch management on the matter and recommend in an interim audit report that management take appropriate corrective action in order to address the current identified issues.

DExpand the audit to include the branches that were not previously selected and determine whether there are similar control breaches at those branches prior to compiling a comprehensive audit report and reporting the issue to senior management and the board.

Show Suggested Answer

Suggested Answer: C

by Nakita at Mar 20, 2025, 02:59 AM

Limited Time Offer

25%

Off

Get Premium IIA-CIA-Part2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Alfreda

2 hours ago

Ha! I bet the branch manager is sweating bullets right now. Option C is probably the most diplomatic approach, but it might let them off the hook too easily.

upvoted 0 times

...

Iesha

4 days ago

I'm not sure about option A. Immediately reporting to the regulatory agency without first addressing the issue internally could really backfire.

upvoted 0 times

...

Elke

6 days ago

But shouldn't we complete all branch reviews first and include details in the audit report?

upvoted 0 times

...

16 days ago

I think option B is the way to go. We need to thoroughly document the issue and have a meaningful discussion with the branch management to ensure corrective actions are taken.

upvoted 0 times

Leana

4 days ago

A) Communicate immediately to the relevant regulatory agency the information regarding the company's control breaches along with details of recommended corrective actions to address the issue.

upvoted 0 times

...

Dell

11 days ago

B) Complete the branch reviews, ensure that the issue and impact are adequately detailed in the audit report, hold an exit meeting to discuss the issue with branch management, and provide recommendations for corrective actions.

upvoted 0 times

...