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

When an internal auditor receives a document displaying all the steps of a process and the path taken as transactions flow between each step, the auditor is most likely to use this document to perform an assessment of the adequacy of process controls. This flowchart or process map helps the auditor understand the process, identify key control points, and evaluate whether the existing controls are sufficient to mitigate risks within the process.

References:

IIA Standards: 2201 - Planning the Engagement

IIA Practice Guide: Internal Auditing and Fraud

According to the International Standards for the Professional Practice of Internal Auditing (Standards) set by the Institute of Internal Auditors (IIA), internal audit functions are allowed flexibility in including consulting engagements in their annual plans. Standard 2010 – Planning states that "the chief audit executive must establish a risk-based plan to determine the priorities of the internal audit activity, consistent with the organization’s goals." This risk-based plan should consider the potential value-add of consulting engagements. Consulting engagements that are expected to add significant value or align with strategic objectives are often included, but not all requests need to be automatically included unless they meet these criteria.References:

Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2010 – Planning.

Including the annual impact of the changed agreement on cash flows in the observation provides a clear quantification of the financial effect of the policy violation. This information is critical for understanding the significance of the issue and for decision-making regarding corrective actions. It shows the long-term implications of the unauthorized contract change, which is essential for management and the board to assess the severity of the non-compliance and its impact on the organization’s financial health.References:

The Institute of Internal Auditors (IIA) - Practice Guide: Formulating and Expressing Internal Audit Opinions

When planning the first audit of IT shared services, it is typical to evaluate entity-level controls first. Entity-level controls are overarching controls that affect the entire organization and are foundational for ensuring that specific application and transaction controls operate effectively. These controls include the organization's governance, risk management processes, and the overall control environment. Assessing entity-level controls provides a broad understanding of the control environment and highlights any pervasive issues that might impact more detailed areas of the audit.References: The IIA's Global Technology Audit Guide (GTAG) and COSO's Internal Control - Integrated Framework.