Questions and Answers
CAE must communicate results of IA services to the board and stakeholders periodically and for each engagement as appropriate.
True
The CAE is not required to review and approve final engagement communications before dissemination.
False
Findings from multiple IA engagements may uncover themes related to effective practices or root causes.
True
When communicating conclusions, the CAE should include criteria used as the basis for the conclusion.
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The themes communicated by the CAE should not be timely and do not require insights or advice.
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The CAE is responsible for ensuring that engagement conclusions are sent to the board without any review process.
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Communication of themes from IA services must include advice and insights to the board and SM.
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The CAE may conclude on the effectiveness of risk management processes only at the organizational level.
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When summarizing results, the CAE is not required to disclose the reliance on other assurance work.
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The CAE must include the scope and limitations in the communication of results to the board and SM.
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Study Notes
Communication of IA Services Results
- The Chief Audit Executive (CAE) is responsible for regularly communicating the results of Internal Audit (IA) services to the board and Senior Management (SM).
- It's essential for the CAE to grasp the expectations regarding the nature and timing of these communications.
Types of Results
- Results of IA services encompass:
- Engagement conclusions that summarize key findings.
- Identification of themes, such as effective practices or root causes of issues.
- Overall conclusions regarding governance, risk management, and control processes at both the business unit and organizational levels.
Engagement Communication Process
- The CAE must:
- Review and approve all final engagement communications before distribution.
- Determine the appropriate audience for disseminating these engagement conclusions.
Insights and Trends
- Findings from multiple engagements can unveil patterns or trends that require timely communication to the board and SM.
- Themes identified should be accompanied by actionable insights and advice.
Supporting Information Requirement
- Conclusions drawn by the CAE should be based on relevant, reliable, and sufficient information to support the effectiveness assessments.
Standards for Communicating Conclusions
- When conveying conclusions to the board and SM, the CAE must include:
- A summary of the original request made for the engagement.
- Criteria that form the basis for the conclusions reached.
- The scope of the engagement, including any limitations and the timeframe covered.
- A summary of supportive information that contributes to the conclusions.
- Disclosure of reliance on the work of other assurance providers, if applicable.
Principle Summary
- Principle 11 emphasizes the need for effective communication guided by the CAE, ensuring that stakeholders are well-informed about IA service outcomes.
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Description
This quiz covers the communication of Internal Audit service results by the Chief Audit Executive. It explores key components, expectations for engagement conclusions, and the process of effectively disseminating findings to the board and senior management. Understanding these elements is crucial for successful reporting.
