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How should an internal auditor approach preparing a detailed risk assessment during engagement planning?
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Question 309 - IIA-CIA-Part2 discussion

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Which of the following statements is true regarding a drawback of using internal control questionnaires (ICQs)?

A.
When internal auditors need to cover many control procedures using ICQs is generally less efficient than conducting observations and inspections
Answers
A.
When internal auditors need to cover many control procedures using ICQs is generally less efficient than conducting observations and inspections
B.
It is generally difficult for internal auditors lo compile appropriate ICQs for business activities that are governed by standardized operating procedures
Answers
B.
It is generally difficult for internal auditors lo compile appropriate ICQs for business activities that are governed by standardized operating procedures
C.
ICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.
Answers
C.
ICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.
D.
It is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management
Answers
D.
It is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management
Suggested answer: A

Explanation:

A drawback of using Internal Control Questionnaires (ICQs) is that they can be less efficient than conducting observations and inspections when many control procedures need to be covered. ICQs can be time-consuming to complete and may not provide the depth of understanding that direct observation and inspection can achieve. They often require follow-up to clarify responses, which can further increase the time and resources needed to obtain the necessary assurance.

The Institute of Internal Auditors (IIA) Practice Guide on 'Audit Evidence Collection'

IIA Standard 2310 -- Identifying Information: 'Internal auditors must identify sufficient, reliable, relevant, and useful information to achieve the engagement's objectives.'

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asked 18/09/2024
garima sharma
51 questions
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