IIA IIA-CIA-Part2 Exam With Confidence Using Practice Dumps

Comprehensive and Detailed Explanation:

Even though this is an advisory engagement, internal auditors must still evaluate significant control gaps discovered during the engagement (Standard 2120 – Risk Management). Since a key procurement control is missing, the auditor should not ignore the risk (D). Expanding the advisory engagement scope (C) would be outside the engagement mandate unless approved. Deferring review to next year’s plan (A) delays needed assurance. The most appropriate step is to perform a root cause analysis and test whether the approved workaround is effective (B). This ensures that risks are mitigated in the interim until a permanent control is implemented, providing management with actionable feedback.

For an action plan to be effective, it must address the root cause of an observation. The root cause is the underlying reason why a problem or issue has occurred. By targeting the root cause, the action plan can help prevent the recurrence of the issue and ensure long-term resolution. Addressing only the condition or the symptoms of the problem may lead to temporary fixes, whereas understanding and resolving the root cause leads to more sustainable improvements.

Institute of Internal Auditors (IIA), Practice Guide – Root Cause Analysis.

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