IIA-CIA-Part2 Exam Results

According to IIA guidance, internal auditors should use relevant information obtained during a consulting engagement to inform and enhance their evaluation of internal controls during related audit engagements. This is because the knowledge gained from consulting activities can provide valuable insights into the functioning of controls and processes, which can be applied when assessing their effectiveness in a subsequent audit.

IIA References:

IIA Standard 1220: Due Professional Care indicates that internal auditors should consider all relevant information available to them when making judgments and recommendations. This includes information obtained from consulting engagements.

The IIA’s Practice Guide on Consulting Engagements advises that while internal auditors must maintain objectivity, they can and should use knowledge gained from consulting engagements to enhance the value and accuracy of their assurance work.

When there is a disagreement between the audit team and management, and if the disagreement concerns a significant risk, the issue should be escalated to the audit committee. The audit committee has the authority to review and resolve such disputes. Escalating the issue ensures that the concern is addressed at the highest governance level, maintaining the integrity and effectiveness of the internal audit function.

References:

The Institute of Internal Auditors (IIA) Standards

Internal Audit Governance and Escalation Procedures

The primary purposes of a walk-through during the initial stages of an assurance engagement are to help develop process maps (A), determine segregation of duties (B), and identify residual risks (C). Testing the adequacy of controls (D) is generally performed after these initial steps to ensure a thorough understanding of the process and risks involved. References: = IIA Standard 2201 - Planning Considerations and IIA Practice Guide: “Walkthroughs for Internal Auditors”.

Vouching is a manual audit procedure where the auditor tests the validity of transactions or records by tracing them backward from the final records to the original source documents. This technique helps verify the authenticity and accuracy of the entries in the accounting records by ensuring that each entry is supported by proper documentation. For example, an auditor might start from an entry in the general ledger and trace it back to the original invoice or receipt to ensure its validity.References:

IIA Global Technology Audit Guide (GTAG) on Understanding and Auditing Big Data

IIA Standard 2310: Identifying Information