Free IIA-CIA-PART2 Web TestEngine Demo

Q2 Single choice

An organization must prepare and report critical loan information to the government. The report contains 121 data fields for each loan, and the final report must have an error rate of less than 5%. Internal auditors reviewed half of the loan portfolio and discovered that the error rate was greater than 50% due to errors in two data fields on each loan.

What is the most appropriate next step for the audit team?

A
Test the remaining half of the portfolio and provide management with an audit report that includes the final documented results.
B
Discuss the finding with management verbally prior to issuing a draft written report and reevaluate the process flow to identify the control gap.
C
Due to the unexpected high error rate, consider deleting the current test results and retesting the loans to ensure that a testing error did not occur.
D
Conclude that the error rate is immaterial because only two of the 121 data elds had errors, which is less than 5%.

IIA-CIA-PART2 Web TestEngine demo