IIA Updated IIA-CIA-Part2 Exam Questions and Answers by kade

An internal audit procedures manual typically includes detailed information on the methodologies, tools, and techniques used during audits. It also outlines the protocols and guidelines for auditors to follow, including their authority and the scope of their work. Clearly defining the extent of the auditor's authority to collect data from management ensures that auditors understand their rights and limitations, which is essential for carrying out effective and efficient audits.References:

The Institute of Internal Auditors (IIA), Practice Guide on Developing the Internal Audit Manual

"Internal Auditing: Assurance and Advisory Services" by Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Chris A. Bailey, and David A. Sarens

The primary advantage of using internal control questionnaires (ICQs) as part of a preliminary survey for an engagement is their efficiency. ICQs allow auditors to quickly gather a large amount of information about the control environment by asking structured questions that cover key areas of interest. This helps in identifying areas that require further investigation or where controls may need improvement.

IIA References:

The IIA’s Practice Guide on Evaluating Internal Controls mentions that ICQs are useful for obtaining an initial understanding of controls and are particularly efficient when time or resources are limited. They allow auditors to systematically cover a wide range of control-related topics in a relatively short period.

According to internal auditing standards and best practices, the distribution of audit reports, especially those involving third-party service providers, must be handled with caution. The CAE should consult with legal counsel and the chief compliance officer before distributing the audit report to ensure that the organization's legal and compliance obligations are met. This ensures that any sensitive information is protected and that the distribution is aligned with the organization's policies and contractual agreements with the service provider.

References:

The Institute of Internal Auditors (IIA) Standards

Internal Audit Guidelines on Confidentiality and Distribution of Audit Reports

The chief audit executive (CAE) is accountable for ensuring that adequate support exists for the conclusions and opinions formed by the internal audit activity. When relying on the work of external auditors, the CAE must ensure that the work is sufficient and appropriate to support the internal audit conclusions. This involves reviewing the external auditors' work to confirm its relevance and reliability, and integrating it into the internal audit processes as necessary.

References:

The Institute of Internal Auditors (IIA) Standard 2050 - Coordination and Reliance.

IIA Standard 2340 - Engagement Supervision