IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 5

According to IIA guidance, the primary purpose of the exit conference is to ensure timely communication of observations and findings, especially those that require immediate management action. This meeting allows auditors to discuss their findings with management, address any disagreements, and clarify the facts before the final report is issued. It does not require the attendance of both the chief audit executive and the chief executive over the activity (B), nor is it solely for reviewing anticipated results (C) or the performance of the internal auditors (D).

Reference: IIA Standard 2440 -- Disseminating Results, IIA Practice Advisory 2440-1

An audit finding should include the standard(s) used by the auditor to make the evaluation (2) and the factual evidence found during the examination (4). These components provide the basis for the auditor's conclusions and ensure that the findings are well-supported and objective. The scope of the audit (1) and the engagement's objectives (3) are typically included in the overall audit report but are not components of individual audit findings.

: 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

When an assurance engagement concludes with no key controls being compromised but notes some opportunities for improvement, the most appropriate approach for the chief audit executive (CAE) is to send the final report to operational management. This ensures that the responsible management can act on the improvement opportunities. Additionally, notifying senior management and the audit committee that no significant findings were identified keeps them informed without overloading them with less critical details, maintaining transparency and proper communication channels.

Reference: IIA Standard 2400 -- Communicating Results, IIA Practice Guide -- Communicating Assurance Engagement Results

When an internal auditor discovers an issue such as a programming error allowing multiple accounts for a single address, the auditor should ensure that the corrective actions are both adequate and effective. This includes scheduling a follow-up review (1) to verify that the program has been corrected and that the accounts have been consolidated. Additionally, evaluating the adequacy and effectiveness of the corrective action proposed by management (2) is essential to ensure the issue has been resolved properly.

Reference: = IIA Standard 2500 - Monitoring Progress and IIA Standard 2320 - Analysis and Evaluation.

Upon discovering a potential conflict of interest, the most appropriate action for the internal auditor is to inform the audit supervisor. This ensures that the issue is properly addressed and investigated according to the organization's policies and procedures. The audit supervisor can then decide on the appropriate course of action, including whether further investigation is warranted.

Reference: = IIA Standard 2440 - Disseminating Results and IIA Standard 2600 - Resolution of Senior Management's Acceptance of Risks.

The chief audit executive (CAE) should meet with the chief IT officer to discuss the incident, the investigation, and any control improvements that will be implemented (1). Additionally, developing an appropriate audit program with the IT auditor to review the organization's Internet-based sales process and key controls (3) is a proactive approach to ensure future incidents are prevented and to enhance the organization's security posture.

Reference: = IIA Standard 2120 - Risk Management and IIA Standard 2201 - Planning Considerations.

To maintain independence and objectivity, the internal auditor should seek permission to extend the current engagement and obtain approval from the process owner before performing any improvement tasks such as training staff on how to use macros. This ensures that the improvement task is formally acknowledged and approved, maintaining the integrity of the audit process.

Reference: = IIA Standard 1130 - Impairment to Independence or Objectivity and IIA Standard 2410 - Criteria for Communicating.

While aligning organizational activities to internal audit activities and measuring according to approved IAA performance measures is important, it adds the least direct value to achieving the IAA's objectives compared to the other strategies. Establishing periodic reviews, using engagement results to guide future activities, and ensuring the format and frequency of IAA reporting align with the organization's governance structure are all more directly impactful strategies.

Reference: = IIA Standard 1300 - Quality Assurance and Improvement Program and IIA Standard 1320 - Reporting on the Quality Assurance and Improvement Program.