CIA IIA-CIA-Part2 Release Date

When an internal audit team leader encounters difficulties due to the lack of a system of internal controls, the most appropriate course of action is to add a consulting component to the scheduled assurance engagement. This approach allows the internal audit team to provide advice and recommendations on establishing internal controls while still fulfilling their assurance responsibilities. By integrating consulting activities, the auditors can help the business unit improve its control environment, which can then be assessed in the assurance engagement.

References:

The Institute of Internal Auditors (IIA) Practice Guide: Consulting Engagements

IIA Standard 1130 - Impairment to Independence or Objectivity

Strategic sourcing would best assist the CAE in balancing the internal audit activity's needs for technical audit skills, budget efficiency, and staff development opportunities. Strategic sourcing involves using a mix of internal resources, co-sourcing, and outsourcing to optimize the audit function. This approach allows the CAE to leverage external expertise for specialized skills, manage costs effectively, and provide growth opportunities for internal staff.

References:

IIA Standards: 2030 - Resource Management

IIA Practice Guide: Developing the Internal Audit Strategic Plan

During the planning phase of an assurance engagement, one of the key supervisory activities is approving the audit work programs. This step ensures that the planned procedures are appropriate for achieving the engagement objectives and that the audit scope is adequately covered. Supervisory activities like ensuring alignment with engagement objectives, reviewing draft reports, and ensuring workpapers support findings typically occur during the fieldwork or reporting phases. Approving the audit work programs at the planning stage helps to ensure that the engagement is well-directed and thorough.References:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2200 - Engagement Planning

According to the IIA's guidance, internal audit can accept consulting engagements, including providing training, as long as it does not impair their independence and objectivity. In this scenario, the most appropriate action for the chief audit executive (CAE) is to accept the engagement and hire an external specialist to deliver the training. This ensures that the internal audit activity does not compromise its independence by training on areas where they might later need to provide objective assurance. By using an external expert, the CAE ensures the training is conducted by someone with the requisite expertise and without any conflict of interest.

References:

The Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 1130: Impairment to Independence or Objectivity.

IIA Practice Guide, "Independence and Objectivity."