Step-by-Step Detailed Explanation:
A . To provide a status update on a short engagement to management of the area under review and to the audit supervisor:
While useful, this is not the primary purpose of issuing interim reports.
B . To confirm agreement with preliminary observations and conclusions identified during the engagement:
Interim reports are not primarily for reaching agreement but for prompt communication of actionable items.
C . To provide those responsible for the area under review with the opportunity to act on certain observations immediately:
Correct. Interim reports are issued when there are observations that require immediate action or management's attention before the final report is issued.
D . To verify that the corrective actions required by senior management are completed as agreed:
Verifying corrective actions occurs after final recommendations are implemented, not through interim reporting.
CIA Exam Syllabus Reference:
Domain V: Performing Internal Audit Services - Reporting and Communication.