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

According to IIA guidance, one of the best practices for enhancing the organizational independence of the internal audit activity is for the chief audit executive (CAE) to meet privately with the board at least annually. This practice reinforces the independence of the internal audit function by ensuring direct and unfiltered communication with the board.

Direct Communication: Private meetings with the board allow the CAE to discuss audit findings, concerns, and other important matters without management's influence, thereby preserving the objectivity and independence of the internal audit function.

Board Support: This direct line of communication helps to secure the board’s support for the internal audit activity, which is critical for its effective functioning.

Independence: Such meetings underscore the independence of the internal audit activity from management, reinforcing its role in providing unbiased assurance.

Comprehensive and Detailed Explanation:

While professional experience and judgment are important, conclusions in internal audit must be supported by objective, sufficient, and reliable evidence (Standard 2310). Merely believing that bid prices are too high is not enough. The auditor must provide substantiated and comparative evidence (C) — such as market benchmarks, independent price analyses, or comparisons with similar tenders — to justify the conclusion. A description of policies (A) or tender process summaries (B) provide context but do not prove overpricing. An impact analysis (D) highlights consequences but does not establish whether prices were indeed unreasonable. Therefore, the correct requirement is to gather and document comparative evidence that supports the auditor’s professional judgment.

A properly supervised engagement ensures that the audit is conducted effectively, efficiently, and in accordance with IIA standards. The auditor in charge has the responsibility to oversee the audit process and ensure that the engagement objectives are achieved.

IIA Standard 2340 – Engagement Supervision:

This standard requires that engagements be supervised to ensure that objectives are achieved, work is performed according to appropriate standards, and the results are supported by sufficient, relevant, and reliable evidence.

Reasonable Assurance:

The auditor in charge must provide reasonable assurance that the audit engagement's objectives were met. This involves reviewing work performed, ensuring compliance with audit standards, and verifying that conclusions are supported by adequate evidence.

IIA Practice Advisory 2340-1:

The advisory emphasizes the role of the auditor in charge in providing oversight throughout the audit engagement. This includes ensuring that auditors follow procedures, apply professional judgment, and that all significant findings are appropriately addressed.

Option A (Daily record review): While keeping a record is good practice, it does not constitute comprehensive supervision.

Option B (Review by peers): Peer review is useful but does not replace the overarching responsibility of the auditor in charge.

Option C (Accompanying new auditors): This is part of training and guidance but does not alone ensure that engagement objectives are met.

Detailed Explanation:Why Not Other Options?