AUD679 - CHAPTER 9

INTERNAL AUDIT REPORT - ANSWERS

TUTORIAL
DECEMBER 2018-QUESTION 5

QUESTION EXPLAINATION

Criteria: There is no deficiency because all the details were being explained thoroughly
a) Discuss three (3) deficiencies in
the quality of communication Condition: There is also no deficiency because all the details being explained
thoroughly.

Cause: There is deficiency because there is no more explanation and the statement is too
general. It should explain on how the receiving department handle the deliveries.

Effect: There is no deficiency because it is being explained in details.

Recommendation: There is deficiency because it just mention that they need 2 staffs that
should be responsible in managing the receiving process. The description is incomplete
because it does not have relevant information to support the recommendation. There is
no more explanation on their scope of work and how they should divide the work.

Action plan: There is deficiency because it is irrelevant information where it stated that
the company should be responsible to bear the costs of the damage. The auditor should
explain or recommend on any action that need to be taken by the company.
 AUD679 - CHAPTER 9
INTERNAL AUDIT REPORT - ANSWERS

TUTORIAL
DECEMBER 2018-QUESTION 5

QUESTION EXPLAINATION

i. Internal auditors must make advance preparation when communicating bad

b) Justify 4 steps to the effective
communication of internal audit
report
news. This includes reviewing findings, confirming auditors understanding of
critical issues, gathering information about the readers and considering
visualizing the point of view they expect from the audience regarding the bad
news.
ii. Internal auditor must focus on the setting for the meeting so that they can
maintain control over the direction of the meeting. They must try to schedule a
time and place where they can have the participants’ undivided.

iii. Internal auditor must anticipate response or feedback from clients to counter
the auditing findings. They need to respond and discuss with clients in a good
and positive manners.

iv. Internal auditors must be straightforward and honest in their delivery.

Internal auditors also should aware with non-verbal cues in communication
such as a body language and face expression this can help in their presentation.
 AUD679 - CHAPTER 9
INTERNAL AUDIT REPORT - ANSWERS

TUTORIAL
DECEMBER 2018-QUESTION 5

QUESTION EXPLAINATION

1) Predict the potential risk to the organization

c) Advise three (3) matters that need to
- Investigate and questioning the doctoral candidate regarding the content needed for
be observed before disclosing the
his/her thesis in order to give authorization for organization information
internal audit report to parties outside
-Ask the candidate to prepare an official and proven letter from university that stated
the organization clearly the purpose of the thesis

2) Conduct an immediate discussion with the authority/senior management for

approval
-Decide and filter which information that can be disclose
-Make sure the document to be disclose receive proper approval according to the
procedure of organization

3) Ensure the organization not violated any legal consideration and privacy regulations
-Notify the candidate about the legally protected information cannot be disclose to
public
-Give the information that will not tarnish the image and reputation of the organization