CIMA Exam CIMAPRA17-BA4-1 Topic 7 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 86
Topic #: 7

Internal audit is considered best practice but is not required by law Which of the following does NOT describe a benefit of internal audit to the board of directors?

AThe internal audit function can help the audit committee have confidence in the fraud prevention systems within the company

BThe internal audit function can provide independent assurance of the financial policies applied to the financial statements

CThe internal audit function can report back to the audit committee if controls are not as effective as they should be

DThe internal audit function can help the audit committee to discharge their responsibilities for the ongoing monitoring of the risk in the company

Show Suggested Answer

Suggested Answer: A

by Lavonna at Apr 29, 2024, 01:33 AM

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Milly

2 months ago

Whoa, hold on! Isn't the internal audit function supposed to report back to the audit committee if controls are not as effective as they should be? That's a no-brainer. I'm going with Option C.

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Malcom

21 days ago

User1: True, but Option C is more directly related to the effectiveness of controls.

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Suzi

1 months ago

User3: I think Option D is also important, it helps the audit committee monitor risks.

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Colene

1 months ago

User2: Yeah, the internal audit function should definitely report back if controls are not effective.

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Mitsue

1 months ago

User1: I agree, Option C seems like the obvious choice.

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Haha, this is a tough one! Maybe the internal audit function can help the audit committee to discharge their responsibilities for the ongoing monitoring of the risk in the company. That's a pretty good one, right? I'll go with Option D.

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Lenna

1 months ago

Yeah, I think so too. Having the internal audit function help with ongoing risk monitoring can really benefit the board of directors.

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Katy

1 months ago

I agree, Option D seems like a good choice. It's important for the audit committee to monitor the risk in the company.

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Teri

2 months ago

I'm not so sure about that. The internal audit function can provide independent assurance of the financial policies, which is a pretty important benefit for the board. I'd go with Option B.

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Kimbery

2 months ago

Why do you think that?

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Jesusita

2 months ago

Option A seems like the best choice to me. The internal audit function can help the audit committee have confidence in the fraud prevention systems, which is crucial for the board's oversight responsibilities.

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Willard

2 months ago

I disagree, I believe the answer is C

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Kimbery

2 months ago

I think the answer is B

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CIMA Exam CIMAPRA17-BA4-1 Topic 7 Question 86 Discussion

Contribute your Thoughts:

Milly

Malcom

Suzi

Colene

Mitsue

Leslie

Lenna

Katy

Teri

Kimbery

Jesusita

Willard

Kimbery