Online IIA-CIA-Part2 Questions Video

If management accepts the issue identified by the internal audit team but takes no remedial action, the next step for the chief audit executive (CAE) is to escalate the issue to senior management. This ensures that senior management is aware of the unresolved significant issue and can take appropriate action to address it. Escalation is a critical step in ensuring that risks are managed effectively and that necessary corrective actions are implemented.

References:

The Institute of Internal Auditors (IIA) Standard 2600

According to IIA guidance, an engagement work program is designed to test the effectiveness of process controls within an organizational process. This involves evaluating whether the controls are adequately designed and operating effectively to mitigate identified risks and achieve the process objectives. The work program outlines the specific procedures and steps auditors will take to gather evidence and assess the controls in place, ensuring that they address the relevant risks and comply with the organization's standards and policies.References:

IIA Standard 2240: Engagement Work Program

IIA Practice Guide: Internal Audit Quality Assurance

Step-by-Step Detailed Explanation:

A. Review year-over-year trending of total dollars spent in each period:This is the correct approach because year-over-year analysis focuses on identifying anomalies or significant variances in expenses over time. Trends in data can help detect unexpected spikes, dips, or patterns that indicate irregularities or inefficiencies. This aligns with analytical procedures in expense analysis under the CIA Exam Syllabus Part 2, which emphasizes the use of comparative techniques to evaluate reasonableness.

B. Review changes to the vendor master file for suspicious activity:While reviewing vendor master file changes is essential for fraud detection and control testing, it does not directly help in determining the reasonableness of monthly expenses.

C. Review the percentage of on-time payments against prior periods:Examining payment timeliness relates to operational efficiency and cash flow management, not directly to evaluating whether monthly expenses are reasonable.

D. Review total expenses for accounting against other department expenses in the organization:Comparing accounting department expenses to those of other departments might indicate disparities but does not consider differences in department-specific activities and needs.

CIA Exam Syllabus Reference:

Domain V: Performing Internal Audit Services – Analytical Procedures and Testing Methods.

A privacy audit engagement should comprehensively cover all aspects related to the collection, storage, and compliance of personal information. This includes assessing the appropriateness of the information gathered (1), reviewing the methods used to collect the information (2), ensuring the information collected complies with applicable laws (3), and determining how the information is stored (4). This comprehensive approach ensures that the organization adheres to privacy standards and regulations effectively. References: = IIA’s Practice Guide: “Privacy Impact Assessment” and IIA Standard 2110.A2 -