CIA IIA-CIA-Part2 Updated Exam

In addition to gathering information, a primary objective of a client interview during the planning stage of an audit engagement is to establish rapport with the client. Building rapport helps in fostering a cooperative relationship, ensuring that the client is open and forthcoming with information, which can significantly enhance the effectiveness of the audit.

IIA References:

IIA Standard 2201: Planning Considerations suggests that internal auditors should establish good communication and rapport with clients during the planning phase to facilitate the audit process.

The Practice Guide on Effective Interviewing Techniques emphasizes that establishing rapport during initial meetings is crucial for gaining the client’s trust and cooperation throughout the audit.

Preliminary communication with HR management is essential to ensure a smooth audit process. According to IIA guidance, the auditor in charge (AIC) should notify HR management before the planning stage begins to facilitate cooperation and alignment. Additionally, scheduling formal status meetings at the start of the engagement helps in setting expectations, clarifying the scope, and ensuring ongoing communication throughout the audit process. These steps foster transparency and collaboration. References:

IIA Standards - 2200: Engagement Planning

IIA Practice Advisory - 2200-1: Engagement Planning

Judgmental sampling, also known as non-statistical sampling, is a technique where the internal auditor uses their professional judgment to select a sample that they believe is most representative of the population. In this scenario, the internal auditors are choosing to review a sample of complaints from the last three months based on their professional judgment that these complaints are reflective of current marketing practices. This method is particularly useful when the auditor has specific knowledge about the population that allows them to make informed selections.

References:

Institute of Internal Auditors (IIA) Standards: Performance Standards 2320: Analysis and Evaluation

Internal Audit Manual: Sampling Techniques and Methodologies

To effectively communicate the acceptance of risk in an organization, a chief audit executive (CAE) must first consider the organization's view on risk tolerance. Understanding the organization’s risk tolerance is crucial because it defines the level of risk the organization is willing to accept in pursuit of its objectives. This perspective guides how risks are communicated and managed across the organization.

References:

IIA Standards: 2120 - Risk Management

IIA Practice Guide: Assessing Organizational Governance in the Public Sector