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Question 115 - IIA-CIA-Part2 discussion

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An organization has a mature control environment but limited internal audit resources Given this scenario, on which of the following should the internal auditors focus their testing?

A.
Detective compensating controls
Answers
A.
Detective compensating controls
B.
Preventive compensating controls
Answers
B.
Preventive compensating controls
C.
Detective Key controls
Answers
C.
Detective Key controls
D.
Preventive key controls
Answers
D.
Preventive key controls
Suggested answer: D

Explanation:

In a mature control environment with limited internal audit resources, internal auditors should focus their testing on preventive key controls. Preventive controls are designed to stop errors or irregularities before they occur, making them crucial for maintaining control effectiveness. Key controls are the most important controls in mitigating risks to an acceptable level. By focusing on these, internal auditors can ensure that the most critical risks are managed effectively despite limited resources.

Reference:

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

The IIA's Practice Guide on Assessing the Adequacy of Control Processes.

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asked 18/09/2024
Jimmy Raiford
45 questions
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