IIA IIA-CIA-Part2 Exam With Confidence Using Practice Dumps

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

The flowchart indicates that different individuals are responsible for various stages of the bank reconciliation process. The Treasury Accountant posts payments and performs reconciliations, while the Senior Treasury Accountant obtains and uploads bank statements, and the Treasury Supervisor approves/reviews the reconciliations. This segregation of duties ensures that no single individual has control over all aspects of the financial transaction process, which helps in preventing errors and fraud.References:

The Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards)

"Auditing and Assurance Services" by Alvin A. Arens, Randal J. Elder, and Mark S. Beasley

According to the IIA Standards, particularly in the context of risk management consulting, internal audit activities may provide risk management consulting services under specific conditions. These conditions include:

There is a clear strategy and timeline to migrate risk management responsibility back to management.This condition ensures that the internal audit's involvement in risk management is temporary and transitional, emphasizing the principle that management retains ultimate responsibility for risk management.

The nature of services provided to the organization is documented in the internal audit charter.This condition ensures transparency and clarity about the internal audit's role in risk management, as outlined in the internal audit charter. This documentation is essential for defining the scope and limitations of the internal audit's consulting role.

In contrast, options 2 and 3 are inappropriate under the Standards:

The internal audit activity has the final approval on any risk management decisions (Option 2): This would compromise the independence and objectivity of the internal audit function, as internal auditors should not make management decisions.

The internal audit activity gives objective assurance on all parts of the risk management framework for which it is responsible (Option 3): This creates a conflict of interest because internal auditors cannot objectively audit areas where they have direct responsibility.

IIA References:

IIA Standard 2050: Coordination and Reliance emphasizes that internal audit should not assume management responsibilities, including final risk management decisions, to maintain objectivity and independence.

IIA Standard 1000: Purpose, Authority, and Responsibility and related guidance stress the importance of documenting the internal audit’s role in the audit charter, especially when the internal audit is involved in consulting activities like risk management.