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

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Tresa

17 days ago

Gotta love those control breaches! At least the auditors are on the case. Option B seems the most comprehensive and responsible solution.

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Margery

19 days ago

I think we should expand the audit to include all branches to see if there are similar issues.

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Alfreda

21 days 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.

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Iesha

25 days ago

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

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Elke

27 days ago

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

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Delisa

28 days ago

Option D sounds like a good idea. We should expand the audit and get a complete picture of the control breaches across all branches before reporting it up the chain.

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Kris

3 days ago

Once we have all the information, we can make informed recommendations to senior management and the board.

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Huey

5 days ago

I agree, it's important to have a comprehensive understanding of the situation before taking further action.

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Clay

7 days ago

Option D sounds like a good idea. We should expand the audit and get a complete picture of the control breaches across all branches before reporting it up the chain.

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Eliseo

13 days ago

Yes, it's better to be thorough and ensure that all potential issues are identified and addressed properly.

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Marguerita

21 days ago

I agree, it's important to have a comprehensive understanding of the situation before taking further action.

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Evangelina

25 days ago

Option D sounds like a good idea. We should expand the audit and get a complete picture of the control breaches across all branches before reporting it up the chain.

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Micaela

1 months ago

We should communicate immediately to the regulatory agency.

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Paz

1 months ago

We found control breaches at the fourth branch during the review.

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Marjory

1 months 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.

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Billy

18 days ago

C) Have 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.

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Leana

25 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.

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Dell

1 months 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.

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