Download Full Version IIA-CIA-Part2 IIA Exam

For an action plan to be effective, it must address the root cause of an observation. The root cause is the underlying reason why a problem or issue has occurred. By targeting the root cause, the action plan can help prevent the recurrence of the issue and ensure long-term resolution. Addressing only the condition or the symptoms of the problem may lead to temporary fixes, whereas understanding and resolving the root cause leads to more sustainable improvements.References:

Institute of Internal Auditors (IIA), Practice Guide – Root Cause Analysis.

One disadvantage of using flowcharts during a risk assessment is that they may not capture serious risks that are not part of the linear process flow. Flowcharts are excellent tools for visualizing processes and identifying control points within a structured workflow. However, they might overlook risks that arise from non-linear interactions, external factors, or complex interdependencies that are not easily represented in a flowchart format. This limitation can result in an incomplete risk assessment if the auditor relies solely on flowcharts without considering other methods to identify all potential risks.References:

Institute of Internal Auditors (IIA), Practice Guide – Auditing the Control Environment.

Management action plans should include, at a minimum, an owner of the action plan. The owner is responsible for ensuring that the action plan is implemented and for overseeing the corrective measures. This accountability is crucial for effective follow-up and resolution of audit findings.

References:

IIA Standards: 2500 - Monitoring Progress

IIA Practice Guide: Follow-up Process in the Internal Audit Activity

According to IIA guidance, when the internal audit activity investigates potential ethics violations in a foreign subsidiary, communication of any internal ethics violations to external parties may occur, but only with appropriate safeguards. This ensures that sensitive information is protected and that the organization complies with both local and international legal requirements. Cross-cultural differences and local laws must be considered, but the primary focus is on maintaining appropriate safeguards during communication. References: IIA Practice Guide – Auditing Ethics Programs, IIA Standard 2440 – Disseminating Results