During the Planning Phase of an Audit, an Internal Auditor

question 331

Multiple Choice

During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?

• A) Compensating controls from other processes were not present.
• B) Redundant controls are not in place to enhance well designed controls.
• C) Entity level controls are informal and not consistently enforced.
• D) Process controls were not developed from an existing key control checklist.

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Definitions:

Responding to Feelings

The capacity to recognize, understand, and appropriately react to the emotions of others.

Constructive Feedback

Useful and positive criticism meant to help improve performance or behavior.

Trust

The confidence in the reliability, truth, ability, or strength of someone or something, often seen as foundational in relationships and organizations.

Communication Barriers

Obstacles in the process of communication that prevent clear and effective exchange of ideas and information between individuals or groups.