Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 296

Which of the following statements is true regarding the final assurance engagement report issued to management?

Answer options

• A. Ratings are only used to assess the condition of an observation made by an internal auditor.
• B. Audit findings may be communicated to management prior to issuance of the final approved audit report.
• C. Communications must be relevant, logical, and free from errors before they are disseminated.
• D. The audit report must present the information in the following order: (1) audit scope, (2) engagement objectives, and (3) engagement results.

Correct answer: B

Explanation

The correct answer is B because it is permissible to communicate audit findings to management before the formal approval of the audit report. Options A and D are incorrect as they misrepresent the purpose of ratings and the required order of information in the report. Option C, while important for effective communication, does not specifically pertain to the issuance of the final report.