Ask Question
IIA-CIA-Part2: Certified Internal Auditor - Part 2, Conducting the Internal Audit Engagement
IIA
Exam Questions:
479
.png)
2.370 Learners
Related questions
An internal auditor has been assigned to facilitate a risk and control self-assessment for the finance group. Which of the following is the most appropriate role that she should assume when facilitating the workshop?
Explanation:
When facilitating a risk and control self-assessment (RCSA) workshop, the internal auditor's most appropriate role is to provide the necessary techniques and guidelines for conducting the exercise. This involves guiding participants on the methodology and framework for identifying and assessing risks and controls without influencing their inputs or conclusions, thereby ensuring an objective and effective self-assessment process.
Reference: = IIA Practice Guide: 'Facilitation Skills for Auditors'.
A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report. According to IIA guidance, which of the following opinions would receive the lowest review priority?
1. Graded positive opinion.
2. Negative assurance opinion.
3. Limited assurance opinion.
4. Third-party opinion.
Explanation:
: According to IIA guidance, a newly promoted chief audit executive (CAE) should prioritize the review of audit reports based on the significance of the findings indicated by the opinion statements. A graded positive opinion (1) suggests that the audit found strong controls with no significant issues, while a third-party opinion (4) typically involves external assessments that may not require immediate internal action. Therefore, these opinions would receive the lowest review priority. In contrast, negative assurance opinions (2) and limited assurance opinions (3) indicate potential issues or limitations in the effectiveness of controls, necessitating higher priority review to address any significant concerns promptly.
Reference: IIA Standard 2410 -- Criteria for Communicating, IIA Practice Advisory 2410-1
How should an internal auditor approach preparing a detailed risk assessment during engagement planning?
Unlock Premium Member
A senior IT auditor is performing an audit of inventory valuation. The auditor misinterprets the sampling results. Which of the following best describes this situation?
During follow-up. the internal auditor discovered that operational management did not implement effective actions to address a significant control breach If the issue is left unresolved it may result in regulatory sanctions and damage the organization's reputation What is the most appropriate next step for the chief audit executive to lake?
The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan Which of the following would be the most appropriate action tor the CAE to take?
What is the primary reason that audit supervision includes approval of the engagement report?
An organization's board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?
Explanation:
According to IIA guidance, the chief audit executive (CAE) should maintain independence and objectivity in their role. While the CAE can manage and coordinate risk management processes, audit those processes, and be involved in risk oversight committees, they should not accept management's responsibility for risk management without the board's approval. This ensures that there is no conflict of interest and maintains the CAE's independence.
Reference:
IIA Standards - 1110: Organizational Independence
IIA Practice Advisory - 2060-1: Reporting to Senior Management and the Board
According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?
Explanation:
According to IIA guidance, a chief audit executive (CAE) may request external consultants to complement internal audit activity (IAA) resources when the audit universe is extensive and diverse. This justifies the need for additional expertise and resources that the internal team may not possess, ensuring comprehensive coverage and effective audit processes. External consultants can bring specialized skills and knowledge, enhancing the internal audit activity's ability to address a broad range of risks and issues within the organization.
Reference: IIA Standard 1210 -- Proficiency, IIA Practice Advisory 1210.A1-1
Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?
Question