IIA Updated IIA-CIA-Part2 Exam Questions and Answers by leia

The engagement work program is primarily based on the scope and audit objectives of the engagement. The work program outlines the specific procedures to be followed during the audit to achieve the defined objectives within the scope of the engagement. It serves as a detailed plan that guides the audit team in their work, ensuring that all necessary areas are covered.

IIA References:

IIA Standard 2240: Engagement Work Program states that internal auditors must develop and document work programs that achieve the engagement objectives. These work programs are directly tied to the scope and objectives of the audit, which determine the nature and extent of audit procedures.

The Practice Guide on Engagement Planning explains that the work program should be designed to address the key risks and objectives identified during the planning phase, ensuring that the audit is comprehensive and focused on the most critical areas.

 Role of CAE as Consultant: The chief audit executive (CAE) can act as a consultant to help management establish a risk management system. Their role should be facilitative rather than directive, ensuring that management owns the risk management process.

 Appropriate Tasks:

Risk Workshops: Coordinating and facilitating risk workshops (option A) helps management identify and assess risks, allowing them to develop appropriate responses. This is a suitable task for the CAE.

Risk Appetite and Indicators: Establishing risk appetite (option B) and setting risk indicators and mitigation plans (option C) are management ' s responsibilities.

Reporting Risks: Determining the number of significant risks to report (option D) should also be a management function.

A risk that is deemed " unacceptable " to the organization is one where the residual risk (the remaining risk after controls are applied) exceeds the organization ' s risk tolerance level. This means that despite controls in place, the level of risk remains higher than what the organization is willing to accept. Identifying such risks is critical for ensuring appropriate management action to mitigate them further. References:

The IIA’s Practice Guide on Risk Management.

COSO’s Enterprise Risk Management – Integrating with Strategy and Performance.

Comprehensive and Detailed Explanation:

Data privacy principles — particularly under GDPR and similar frameworks — emphasize data minimization, purpose limitation, and lawful processing. Once a customer closes an account and the statutory retention period ends, the organization should destroy personal information (A) to prevent misuse. Sharing data with affiliates (B) without explicit consent violates purpose limitation. Retaining data for convenience (C) is not legally justified. Using personal information for external research (D) is only valid if explicit consent was granted, but this is not described. Thus, the correct approach is Option A — delete data when it is no longer needed or legally required, ensuring compliance with privacy laws.