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IIA Practice of Internal Auditing IIA-CIA-Part2 Question # 33 Topic 4 Discussion

IIA Practice of Internal Auditing IIA-CIA-Part2 Question # 33 Topic 4 Discussion

IIA-CIA-Part2 Exam Topic 4 Question 33 Discussion:
Question #: 33
Topic #: 4

At a construction company, an internal auditor is planning an audit of the company's process for designing and building grid connections The process involves customers making payments m three parts

• The first payment of 10% after approval of the customer s application

• The second payment of 70% prior to construction

• The third payment of 20% after construction is complete

Which of the following key controls should the auditor test to ensure that the company is not taking any unwanted credit risks?


A.

Controls that ensure that grid connection design is finalized before construction is approved to begin


B.

Controls that ensure construction orders are initiated after the second invoice is paid


C.

Controls that ensure all three invoices are calculated correctly according to the total project cost


D.

Controls that ensure that applications are verified for approval prior to initiating design and construction


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