Client Relations Flashcards
7 cards from real CIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Client Relations flashcards as text
A senior executive requests that internal audit perform a consulting engagement to design a new procurement process. What should the CAE consider FIRST?
Answer: Whether the engagement could impair objectivity for future assurance work on that process
Consulting on process design can create objectivity concerns for subsequent assurance engagements, which must be evaluated and disclosed.
In a consulting engagement, who generally determines the nature and scope of the work?
Answer: The internal auditor and the engagement client by agreement
Consulting objectives and scope are agreed between the internal auditor and the client.
An auditee offers the internal auditor tickets to a sporting event during an ongoing engagement. The auditor should:
Answer: Decline, because accepting gifts could impair or appear to impair objectivity
Accepting anything of value that may impair or appear to impair professional judgment conflicts with ethical requirements.
Which approach to client relations BEST reflects a partnering mindset without compromising independence?
Answer: Collaborating on risk identification while retaining sole responsibility for audit conclusions
Internal auditors can collaborate and add value but must keep judgment and conclusions independent.
During the closing meeting, the BEST practice for the internal auditor is to:
Answer: Discuss results, confirm understanding, and agree on corrective actions and timelines
The exit meeting is for discussing results and agreeing on action plans before the final report.
Which of the following is a key benefit of a written engagement memo or letter sent to the auditee before fieldwork?
Answer: It formally communicates objectives, scope, timing, and information needs
An engagement notification letter sets clear expectations in writing.
If management accepts a level of risk that the CAE believes may be unacceptable to the organization, the CAE should FIRST:
Answer: Discuss the matter with senior management
The CAE first discusses with senior management and escalates to the board if the matter is not resolved.