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

When the internal audit activity lacks the necessary IT expertise to review the information security function, the chief audit executive (CAE) should contract an external service provider with the required experience. This ensures that the audit is conducted effectively and in accordance with the Standards, which require internal auditors to have or acquire the necessary skills to perform their work.

IIA References:

IIA Standard 1210: Proficiency requires internal auditors to possess the knowledge, skills, and other competencies needed to perform their responsibilities. When the necessary expertise is not available within the internal audit activity, the CAE must obtain competent advice and assistance by either contracting external experts or outsourcing the audit.

The Practice Guide on Engaging External Service Providers suggests that when specialized skills are required, engaging an external service provider is a practical solution to ensure the audit's quality and effectiveness.

According to IIA guidance, to maximize the value of the current internal audit activity (IAA) resources, it is appropriate to hire external resources to provide subject-matter expertise while ensuring they are supervised (3). Additionally, assigning auditors to complex audits for learning opportunities helps in skill development and enhances the overall capability of the IAA (4). These strategies ensure that the IAA can address complex and high-risk areas effectively while also fostering professional growth among internal auditors. References: IIA Practice Guide – Staffing the Internal Audit Activity, IIA Standard 2030 – Resource Management

According to IIA guidance, the audit objective for an assurance engagement must consider the possibility of fraud and noncompliance. This consideration is essential for ensuring that the audit adequately addresses potential risks that could impact the organization. Assessing the possibility of fraud and noncompliance helps in identifying areas where controls might be deficient and where significant risks might be present, thus enabling the internal audit activity to provide meaningful and relevant recommendations.

References:

The Institute of Internal Auditors (IIA) Standard 2120 – Risk Management: "The internal audit activity must evaluate the potential for the occurrence of fraud and how the organization manages fraud risk."

IIA Practice Guide on "Fraud Risk Assessment"

The most beneficial approach for the newly appointed CAE to obtain details of the internal audit activity's collective knowledge, skills, and competencies is to review or establish a documented skills assessment of the internal audit staff and gather information from post-audit surveys. This method provides a comprehensive view of the team's capabilities and identifies any skill gaps that need to be addressed, ensuring that the internal audit function can effectively fulfill its responsibilities. References:

The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 1210 - Proficiency.

The IIA’s Practice Guide on Building a Competency Framework for Internal Auditing.