Pearson IIA-CIA-Part1 New Attempt

An assurance engagement provides an independent assessment of governance, risk management, and control processes. In this case, including the effectiveness of oil price risk management in the annual audit plan as an assurance engagement would allow the internal audit activity to evaluate the controls and processes in place for managing this significant risk. Even though the financial risk committee regularly addresses market risks, an independent review by internal audit can provide additional assurance to stakeholders about the effectiveness of these risk management practices. References: The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2010 - Planning, and Standard 2130 - Control.

Advisory services are generally performed at the request of an engagement client and are intended to provide advice, facilitation, training, assessments, or other assistance that adds value without internal audit assuming management responsibility. The nature and scope of an advisory engagement are typically agreed with the requesting client and are responsive to that client’s needs and expectations. Option A describes assurance work because it emphasizes an independent assessment of evidence and an objective conclusion. Option B is more characteristic of assurance engagements, where internal auditors independently establish objectives, scope, and procedures based on risk. Option D describes the traditional three-party relationship associated with assurance engagements: the auditor, the responsible party, and the user of the assurance results. Therefore, providing assessment services requested by the engagement client best characterizes advisory work.

The chief audit executive (CAE) would include the scope and frequency of both internal and external quality assessments on the quarterly board meeting agenda as part of the internal audit activity ' s quality assurance and improvement program. This topic is essential for ensuring the board is informed about the mechanisms in place to maintain and enhance the quality of the internal audit function. Regular updates on quality assessments help the board understand the effectiveness of the internal audit activity and its commitment to continuous improvement.

The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards) - Standard 1311: Internal Assessments and Standard 1312: External Assessments.

The IIA’s Quality Assessment Manual.