Certified Professional Public Buyer (CPPB) Practice Test

Who are typically the recipients of audit reports?

1. Clients and customers

2. Staff members

3. Interdepartmental, intradepartmental, higher level management

4. External stakeholders

The correct answer is: Interdepartmental, intradepartmental, higher level management

The recipients of audit reports typically include interdepartmental, intradepartmental, and higher-level management. This is because these stakeholders have a vested interest in the outcome of the audit, as it often pertains to the organization’s efficiency, compliance, and financial performance. Interdepartmental communication can be crucial, especially when the findings may affect multiple departments or require collaborative actions for implementation of recommendations. Intradepartmental recipients, such as staff within the same department as the auditors, may also need to understand the findings to improve processes or rectify issues. Higher-level management is particularly important as they are responsible for strategic decision-making and ensuring that the organization is operating within its parameters of risk and policy guidelines. While the other options might involve some level of interest in audit findings, they do not reflect the primary audience for the reports. Clients and customers may only care indirectly about audit results unless it affects the services or products they receive. Similarly, while staff members at various levels might benefit from understanding audit conclusions, the principal audience of audit reports usually lies within the management and departments directly impacted by the audit's scope. External stakeholders, such as investors or regulators, might occasionally receive audit findings, but they are not the primary recipients in most organizational audits.