Exactprep IIA-CIA-Part2 Questions

When interviewing a fraud suspect, it is important to gather both subjective and objective information (Option 1). Subjective information can include opinions or perspectives, which may provide insights into motivations or behaviors, while objective information consists of factual data. The interviewer typically begins with open-ended questions (Option 3) to allow the suspect to provide information freely and without leading them to specific answers. The primary objective is to gather information rather than to obtain a written confession (Option 2), and video recordings, while beneficial in certain cases, are not always used and thus not a standard requirement (Option 4). References:

The IIA’s Practice Guide on Conducting Internal Audits in Conformance with the International Standards for the Professional Practice of Internal Auditing (Standards).

The IIA’s Practice Guide on Fraud Auditing and Investigation.

A risk-based approach to control self-assessment focuses on aligning the organization’s business objectives with the risks managed by specific work units. This method ensures that the controls are effectively designed and operated to mitigate risks that could impede achieving business objectives. Options A, B, and C describe evaluating controls and processes in specific contexts but do not illustrate the primary focus of linking business objectives with the associated risks at the work unit level, which is central to a risk-based approach.References:

IIA Practice Guide on Control Self-Assessment.

IIA Standard 2120: Risk Management.

According to the International Standards for the Professional Practice of Internal Auditing (Standards) issued by The Institute of Internal Auditors (IIA), the Chief Audit Executive (CAE) must communicate and obtain approval from the board for significant changes to the audit plan. A corporate merger is a significant event that introduces emerging risks, necessitating an interim adjustment to the audit plan. The CAE's responsibility includes ensuring that the board is informed and approves the revised audit plan to address these new risks adequately.

References:

The Institute of Internal Auditors (IIA) Standard 2020 – Communication and Approval: "The chief audit executive must communicate the internal audit activity’s plans and resource requirements, including significant interim changes, to senior management and the board for review and approval."

When significant control issues are identified during a consulting engagement, it is the responsibility of the chief audit executive to ensure that these issues are communicated to senior management and the board. This ensures that the organization is aware of the risks and can take corrective action. Consulting engagements should not overshadow the priority of addressing critical control issues that may affect the organization's risk profile. References:

"International Standards for the Professional Practice of Internal Auditing" (IIA Standards)

"Internal Auditing: Assurance & Advisory Services" (The Institute of Internal Auditors)