Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 247

Which of the following is true of engagement recommendations?
I. Specific suggestions for implementation must be included.
II. The internal auditor's observations and conclusions may serve as the basis.
III. Actions to correct existing conditions or improve operations may be included.
IV. Approaches to correcting or enhancing performance may be suggested.

Answer options

• A. I only
• B. III only
• C. I, III, and IV only
• D. II, III, and IV only

Correct answer: D

Explanation

The correct answer is D because engagement recommendations can indeed be based on the internal auditor's observations (II), include actions to rectify current issues (III), and suggest methods for enhancing performance (IV). Option A is incorrect as it excludes valid points, option B only considers one aspect, and option C omits essential observations made by the internal auditor.