IIA IIA-CIA-Part2 Questions Answers

Strategic sourcing would best assist the CAE in balancing the internal audit activity's needs for technical audit skills, budget efficiency, and staff development opportunities. Strategic sourcing involves using a mix of internal resources, co-sourcing, and outsourcing to optimize the audit function. This approach allows the CAE to leverage external expertise for specialized skills, manage costs effectively, and provide growth opportunities for internal staff.

References:

IIA Standards: 2030 - Resource Management

IIA Practice Guide: Developing the Internal Audit Strategic Plan

A periodic report from the chief audit executive (CAE) to the board typically includes information about the internal audit activity's purpose, authority, responsibility, and performance relative to the audit plan. This report ensures that the board is kept informed about the internal audit activity’s alignment with organizational goals, its independence, and any significant issues or deviations from the plan.

IIA References:

IIA Standard 2060: Reporting to Senior Management and the Board requires the CAE to report periodically to the board on the internal audit activity’s purpose, authority, responsibility, and performance relative to its plan. This standard ensures that the board has a clear understanding of how the internal audit activity is fulfilling its role.

The Practice Guide on Effective Communication with the Board recommends that the CAE provide regular updates on the internal audit activity’s progress against its plan and any significant issues that require the board’s attention.

Preparing a detailed audit program is a critical component of engagement planning. This program outlines the specific procedures and tests that the internal auditor will perform to evaluate the effectiveness of controls. It ensures that the audit is conducted systematically and thoroughly, addressing all relevant risks and objectives. A detailed audit program provides a clear roadmap for the audit, helping to ensure that all necessary areas are covered and that the audit's objectives are achieved.References:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2201 - Planning Considerations

The primary objective of an engagement supervisor’s review of key activities during the engagement is to ensure that all work performed meets acceptable quality standards. This includes verifying that audit procedures were appropriately executed, audit evidence is properly documented, and audit conclusions are supported. The supervisor's review is crucial for maintaining the integrity and reliability of the audit process, ensuring compliance with internal audit standards and protocols.References:

IIA Standard 2340: Engagement Supervision

IIA Practice Guide: Quality Assurance and Improvement Program