Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 54

Which of the followings statements describes a best practice regarding assurance engagement communication activities?

Answer options

• A. All assurance engagement observations should be communicated to the audit committee.
• B. All assurance engagement observations should be included in the main section of the engagement communication.
• C. During the "communicate" phase of an assurance engagement, it is best to define the methods and timing of engagement communications.
• D. A detailed escalation process should be developed during the planning stage of an assurance engagement.

Correct answer: D

Explanation

The correct answer, D, emphasizes the importance of having a clear escalation process set up in advance, which helps manage issues effectively during the engagement. The other options, while relevant to communication, do not capture the essence of establishing a structured approach prior to the engagement, making them less effective as best practices.