CIA IIA-CIA-Part2 Exam Questions and Answers PDF

According to IIA guidance, sufficient and reliable information is characterized by the ability to reach consistent audit conclusions regardless of who performs the audit. This means that the information collected during the audit is adequate, factual, and well-documented so that different auditors would be able to draw the same conclusions based on the evidence. Consistency in audit conclusions enhances the reliability and credibility of the audit process.

References:

The Institute of Internal Auditors (IIA) Practice Guide: Quality Assurance and Improvement Program

IIA Standard 2310 - Identifying Information

IIA Standard 2330 - Documenting Information

A material impact on the accuracy of the prior year's financial statements due to the inaccurate operation of controls is a significant issue that would likely prompt special notification from the chief audit executive (CAE) to senior management. This is because such an issue can have substantial implications for the organization's financial reporting, stakeholder trust, and compliance with regulatory requirements. Immediate notification ensures that senior management can take timely corrective action to address and remediate the issue.

References:

The Institute of Internal Auditors (IIA) Standards

Internal Audit Guidelines on Material Misstatements and Communication

When a significant finding is noted early during a review of the accounts payable function, the best course of action for communicating the issue is to inform internal accounting management via an interim memorandum update. This allows for timely communication and potential early remediation actions, ensuring that management is aware of the issue and can address it promptly before the final audit report is issued.

References:

The Institute of Internal Auditors (IIA) Standards

Internal Audit Communication and Reporting Protocols

According to the International Standards for the Professional Practice of Internal Auditing (Standards) set by the Institute of Internal Auditors (IIA), internal audit functions are allowed flexibility in including consulting engagements in their annual plans. Standard 2010 – Planning states that "the chief audit executive must establish a risk-based plan to determine the priorities of the internal audit activity, consistent with the organization’s goals." This risk-based plan should consider the potential value-add of consulting engagements. Consulting engagements that are expected to add significant value or align with strategic objectives are often included, but not all requests need to be automatically included unless they meet these criteria.References:

Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2010 – Planning.