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
Which stakeholder is the internal audit activity's PRIMARY reporting relationship for functional purposes?
Answer: The board or audit committee
The CAE reports functionally to the board to support independence and administratively to senior management.
When an engagement client requests a quick informal review of a new system right before go-live, the internal auditor should:
Answer: Treat it as a consulting engagement, clarify scope and limitations, and document the agreement
Informal advisory work should still have an agreed understanding and appropriate documentation.
During an engagement, the auditor discovers indicators of fraud involving the auditee's supervisor. The auditor should:
Answer: Communicate the matter to appropriate authorities per the organization's policies, such as the CAE and legal
Fraud indicators must be escalated through proper channels, not discussed with potentially involved parties.
Which practice helps internal audit understand stakeholder expectations when developing the annual audit plan?
Answer: Soliciting input from senior management and the board
Risk-based planning considers input from senior management and the board.
An auditee responds to a recommendation by proposing an alternative corrective action. The internal auditor should:
Answer: Evaluate whether the alternative adequately addresses the underlying risk
Management may choose different actions as long as the risk is adequately mitigated.
Which of the following BEST describes the purpose of maintaining an ongoing relationship with management between engagements?
Answer: To stay informed of emerging risks and organizational changes
Continuous engagement helps internal audit identify emerging risks and remain relevant.
If engagement results are released outside the organization, the CAE should generally:
Answer: Assess potential risk, consult senior management or legal counsel, and control dissemination
External dissemination requires assessing risks, consulting appropriate parties, and limiting use.