All IIA-CIA-Part2 Test Inside IIA Questions

For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined. In consulting engagements, the objectives and scope are usually agreed upon with the client at the outset, and planning activities then focus on how to achieve these objectives within the defined scope.

References:

IIA Standards: 2010 - Planning

IIA Practice Guide: Consulting Services

The statement that the risk management process supports internal audit by evaluating whether critical controls are adequate and effective is true. The risk management process provides a framework for identifying, assessing, and managing risks, and internal audit uses this information to evaluate the adequacy and effectiveness of controls in place to mitigate those risks. This support helps internal audit focus on areas of high risk and ensure that controls are functioning as intended.

References:

IIA Standards: 2120 - Risk Management

IIA Practice Guide: Assessing the Adequacy of Risk Management Processes

Review notes are a tool used by engagement supervisors to ensure that audit workpapers and related documents are accurate, complete, and in line with auditing standards. According to the IIA's International Standards for the Professional Practice of Internal Auditing, these notes are part of the supervisory process, designed to improve the quality of the audit engagement.

IIA Standard 2340 – Engagement Supervision:

This standard emphasizes that audit engagements must be properly supervised to ensure that objectives are achieved, work is performed according to appropriate standards, and the results are supported by sufficient evidence. Review notes are part of this supervisory process.

Clearing Review Notes:

Once the concerns raised by the engagement supervisor are addressed, review notes serve their purpose and can be removed from the final documentation. This is standard practice, as the final workpapers should reflect only the resolved and agreed-upon findings and conclusions.

Documentation and Record Retention:

According to the IIA's standards, while it’s essential to document that supervision took place, the specific review notes themselves do not need to be retained once the issues are resolved. The documentation should reflect the final outcome of the review process, ensuring that the audit work is thoroughly vetted.

IIA Practice Advisory 2330.A1-1:

This advisory highlights that workpapers should be complete, and clearing review notes helps in maintaining clarity and reducing unnecessary clutter in the final audit documentation.

Option B: This option suggests that management must address the review notes, which is incorrect. The engagement supervisor's notes are meant for the audit team, not management.

Option C: This option implies that the chief audit executive must sign the review notes, which is not a requirement by the IIA standards. The CAE ensures overall supervision but does not need to sign each review note.

Option D: While review notes do demonstrate supervision, they do not need to be retained after the concerns have been addressed.

Detailed Explanation:Why Not Other Options?Conclusion: Option A is correct because it reflects the best practice of clearing review notes once they have fulfilled their purpose during the audit process, aligning with IIA guidelines.

An internal control questionnaire (ICQ) is designed to gather detailed information about the operation of specific controls within an organization. It is particularly useful for understanding whether controls, such as adherence to approval matrices, are being followed consistently across different units. ICQs provide a structured way to collect this information from respondents, ensuring that all relevant aspects of the control environment are considered. This method is effective for assessing compliance with established procedures and identifying areas for improvement.References:

Institute of Internal Auditors (IIA), Practice Guide – Internal Control Questionnaire.