IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 15

The primary reason for internal auditors to conduct interim communications with management of the area under review is to provide timely discussion of results. This allows management to be informed of preliminary findings and issues as they arise, enabling quicker corrective actions and avoiding surprises in the final report. Interim communications help ensure that audit results are relevant and actionable.

Reference:

The IIA's International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2410 - Criteria for Communicating.

The IIA's Practice Guide on Communicating Results.

Nonsampling risk is the risk that the auditor may reach incorrect conclusions for reasons not related to the sampling process, such as failure to recognize exceptions or misinterpretation of audit results. In this case, the internal auditor did not notice that some purchase requisitions were approved by unauthorized persons, which is an oversight unrelated to the sample size or selection process. This is distinct from sampling risk, which is the risk that the sample selected does not represent the population.

Reference:

The IIA's International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2320 - Analysis and Evaluation.

The IIA's Practice Guide on Audit Sampling.

Discovery sampling is typically used when an internal auditor wants to test a large sample for fraud. This technique is particularly effective for identifying instances of fraud or other irregularities in a population. Discovery sampling is designed to detect at least one occurrence of an attribute, such as fraud, within the sampled population if it exists. It is particularly useful when the occurrence rate of the fraud is expected to be low.

IIA Practice Guide: Sampling in Internal Auditing

IIA Standards: 2320 - Analysis and Evaluation

The primary reason for conducting a preliminary risk assessment during engagement planning is to ensure that significant risks are included in the engagement scope. This assessment helps the internal auditor focus on areas of highest risk, ensuring that the audit provides the most value by addressing the most critical issues that could impact the organization's objectives.

IIA Standards: 2201 - Planning Considerations

IIA Practice Guide: Engagement Planning

When performing a consulting project to assist in making a decision on a new software system, the engagement objectives would be determined by understanding the engagement client's expectations. This ensures that the consulting engagement is aligned with what the client needs and expects, leading to more relevant and useful recommendations.

IIA Standards: 2010 - Planning

IIA Practice Guide: Consulting Services

A survey with closed-ended questions can produce quantifiable evidence. Closed-ended questions limit responses to predefined options, making it easier to analyze and quantify the results. This type of survey is effective in gathering specific, comparable data from respondents.

IIA Practice Guide: Survey Methods in Internal Auditing

IIA Standards: 2310 - Identifying Information

According to IIA guidance, elements of evaluation reflect a valid principle for the internal audit activity to rely on the work of internal or external assurance providers. This principle involves assessing the competence, objectivity, and performance of the assurance providers to ensure their work can be relied upon. Proper evaluation helps internal auditors determine the extent to which they can use the work of others in forming their conclusions.

IIA Standards: 2050 - Coordination and Reliance

IIA Practice Guide: Reliance by Internal Audit on Other Assurance Providers

Facilitated team workshops are the method of examining entity-level controls that involve gathering information from work groups that represent different levels in an organization. These workshops encourage interactive discussion and collaboration among participants from various departments and hierarchical levels, providing a comprehensive view of entity-level controls and promoting a better understanding of control processes and issues.

IIA Standards: 2210 - Engagement Objectives

IIA Practice Guide: Assessing the Adequacy of Risk Management Processes

A RACI (responsible, accountable, consult, and inform) chart is the tool that an internal auditor should use to determine whether all principal stakeholders are involved in a project. A RACI chart clearly defines roles and responsibilities for each task or deliverable in a project, ensuring that all necessary stakeholders are identified and their involvement is appropriately documented.

IIA Practice Guide: Auditing Project Management Activities

IIA Standards: 2201 - Planning Considerations