Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 48

During an audit of the accounts receivable (AR) process, an internal auditor noted that reconciliations are still not performed regularly by the AR staff, a recommendation that was made following a previous audit. Monitoring by the financial reporting function has failed to detect the shortcoming. Both the financial reporting function and AR report to the controller, who is responsible for implementing action plans. Which of the following supports the internal auditor's decision to combine both observations into one reported finding?

Answer options

• A. The observation was made during the same audit, and the action plan has a common owner.
• B. The observation relates to the same control activity within a common process.
• C. The observation has a common control, and it was noted in a prior audit.
• D. The observation has a common process, and the action plan for the observation has a common owner.

Correct answer: D

Explanation

The correct answer is D because it highlights the shared process and the fact that both issues have the same owner for their respective action plans, indicating a direct link between them. Options A and B do not sufficiently connect the observations, while option C incorrectly focuses on a prior audit rather than the current action plan ownership.