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

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

The chief audit executive (CAE) typically performs several activities following an audit engagement, including reporting follow-up activities to senior management, implementing follow-up procedures to evaluate residual risk, and evaluating the extent of improvements. These activities are crucial to ensure that audit recommendations are properly addressed and that any residual risks are managed effectively. However, determining the costs of implementing the recommendations is not typically a responsibility of the CAE. This task is usually handled by the management of the area being audited, as they have the detailed operational knowledge necessary to accurately estimate these costs. References:

The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2500 - Monitoring Progress.

The IIA’s Practice Guide on Follow-up Processes.

An engagement work program is of greatest value to audit management when it helps ensure the achievement of the engagement objectives. The work program outlines the audit procedures and tests that need to be performed to gather sufficient and appropriate evidence to support the audit findings and conclusions. By aligning the work program with the engagement objectives, auditors can focus their efforts on the most critical areas, ensure that all necessary steps are taken, and ultimately achieve the intended outcomes of the audit.References:

Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2240 – Engagement Work Program.

According to IIA guidance, a common assurance service performed by the internal audit activity is validating whether employees are following established policies and procedures in various departments, such as procurement. Assurance services involve assessing evidence and providing conclusions regarding the effectiveness of governance, risk management, and control processes. Ensuring compliance with established policies and procedures is a fundamental assurance activity that helps organizations maintain control and mitigate risks.

References:

The Institute of Internal Auditors (IIA) Standard 2130 – Control: "The internal audit activity must assist the organization in maintaining effective controls by evaluating their effectiveness and efficiency and by promoting continuous improvement."

IIA Practice Guide on "Assurance Engagements"