A Report Prepared by the Internal Audit Activity Contains Several

question 17

Multiple Choice

A report prepared by the internal audit activity contains several observations that disclose proprietary information regarding the organization's manufacturing process. According to the International Professional Practices Framework, which of the following is the appropriate treatment for this report?

• A) Distribute the report only to the board to protect disclosure.
• B) Disclose and distribute this information in a separate report.
• C) Remove the observations and report verbally to senior management.
• D) Require a separate non-disclosure statement from each recipient.

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Definitions:

Spontaneity

The quality of being impulsive or of acting without premeditation.

Innovation

The process of creating new ideas, products, or methods that add value or solve existing problems.

Decision-Making

The cognitive process of selecting a course of action among multiple alternatives to achieve a specific goal.

Risk

The potential for loss or adverse outcomes arising from a variety of factors, including financial, operational, reputational, or external events.