IIA Updated IIA-CIA-Part1 Exam Questions and Answers by presley

The engagement supervisor should encourage the auditor to improve communication skills. Effective communication is essential for internal auditors, especially in ensuring that process owners have the opportunity to respond to and clarify any issues raised in the draft audit report. This collaboration helps ensure that the audit findings are accurate and that any misunderstandings or errors are resolved before the report is finalized. Encouraging better communication also helps build a positive relationship between the audit function and the audit clients.

References:

• The IIA Standards: Standard 2420 – Quality of Communications: "Communications must be accurate, objective, clear, concise, constructive, complete, and timely."
• IIA Practice Guide: "Effective Communication for Internal Auditors": Emphasizes the importance of clear and effective communication in the audit process, including involving audit clients in the review of draft reports.

Developing a risk and control model for an engagement should take into account the specific characteristics, processes, and risks of the organization being audited. Tailoring the model ensures that the controls are relevant and effective for the specific context of the organization, leading to a more accurate and useful audit outcome. References:

• IIA's International Professional Practices Framework (IPPF), particularly on risk-based auditing and control frameworks.

Nonconformance with the Standards that requires disclosure to the board includes the failure to conduct external assessments within the timeframe stipulated by the IIA standards. Specifically, Standard 1312 requires that an external quality assessment must be conducted at least once every five years. Not completing this assessment within the last seven years constitutes a nonconformance that must be reported.References: Institute of Internal Auditors (IIA) Standards, specifically Standard 1312 on External Assessments.

The scenario indicates a lack of communication competency. Effective communication involves not only presenting audit findings clearly but also ensuring that management is adequately informed and understands the findings prior to the closing meeting. Sharing draft findings in a way that management was not familiar with and found confusing suggests shortcomings in how information was conveyed.

• Option B: Business acumen is understanding the business context, which is not the primary issue here.
• Option C: Persuasion involves influencing others, which is secondary to clear communication.
• Option D: Critical thinking is about analysis and judgment, not directly related to the communication issues described.

References:

• IIA Standard 2420: Quality of Communications.
• IIA Practice Guide: Communication.