Step-by-Step Detailed Explanation:
A . ICQs are most useful in more organic, decentralized organizations with specialized departmental or regional characteristics:
ICQs are standard tools and can be used in a variety of organizational structures, not just decentralized ones.
B . An ICQ can be used effectively either by sending it in advance for management of the area under review to complete or by testing each procedure and recording the results:
Correct. ICQs are versatile tools that can be used for both self-assessment by management and as part of a detailed audit procedure.
C . An ICQ is not an efficient tool, as it can only inquire about controls and it does not test them:
ICQs can test controls indirectly by revealing whether they are documented and applied properly.
D . ICQs are also known as checklist audits and encourage management of the area under review to answer "no" or "yes" more accurately:
ICQs are not limited to a checklist format and their value goes beyond simple yes/no answers.
CIA Exam Syllabus Reference:
Domain V: Performing Internal Audit Services - Tools for Assessing Internal Controls.