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

According to the IIA’s Fraud and Internal Audit position paper1, internal auditors should not investigate fraud unless they have the specific experience and expertise required to do so. Therefore, the most appropriate option for the chief audit executive is to appoint an independent fraud investigation specialist to work with the selected internal auditors. This will ensure that the investigation is conducted in a professional and ethical manner, and that the evidence is not compromised or tainted. The other options are not suitable because they do not address the immediate need for fraud investigation expertise, and they may expose the organization to legal or reputational risks.

by a grantee that received a charitable contribution, the most effective method is to visit the grantee and directly assess whether the project execution aligns with the scope defined in the grant. This method provides firsthand evidence of the grantee’s activities and ensures that the charitable contributions are used as intended.

IIA Standard 2310 – Identifying Information:

This standard requires that internal auditors gather sufficient, reliable, relevant, and useful information to achieve the engagement objectives. Visiting the grantee allows auditors to observe and verify the actual execution of the project, which provides the most direct and reliable evidence.

Field Visits:

Conducting a site visit enables auditors to see the project in action, interview relevant personnel, and compare actual activities to what was promised in the grant proposal. This method helps ensure that the grantee is fulfilling its obligations and that the organization’s charitable funds are being used effectively.

Direct Evidence:

Direct observation of the grantee’s activities provides the highest level of assurance regarding the validity of the reported activities. This aligns with IIA’s emphasis on obtaining the best available evidence to support audit findings.

Option B (Verifying final report vs. initial budget): This only compares reports, which might not accurately reflect the actual activities conducted by the grantee.

Option C (Reconciling general ledger accounts): This focuses on financial records, which may not provide sufficient detail about the actual activities conducted.

Option D (Interviewing corporate affairs employees): While informative, this method only provides secondhand information and does not directly verify the grantee’s activities.

Detailed Explanation:Why Not Other Options?Conclusion: Option A is correct because visiting the grantee provides the most reliable and direct evidence that the activities are in line with the grant’s defined scope, ensuring the validity of the grantee’s reported activities.

Non-assurance engagements, such as consulting activities, involve providing advisory services that add value to management without the auditor expressing a formal opinion or providing assurance on the effectiveness of controls or processes.

IIA Definition of Non-Assurance (Consulting) Services:

Non-assurance services, as defined by the IIA, are advisory and related client service activities. These activities are intended to provide advice and insight into specific issues, such as potential risks in new initiatives, without the internal audit function expressing an assurance opinion.

Consulting Engagements:

In a consulting engagement, the internal audit activity provides information and recommendations to management, allowing them to make informed decisions. In this case, informing management about potential risks of moving the data warehouse to a cloud server is an advisory role, typical of a non-assurance engagement.

IIA Standard 2120 – Risk Management:

While this standard relates to risk management assurance, in a consulting role, the internal audit activity would inform management of risks, allowing them to manage these risks proactively.

Option A (Assessing effects of changes in maintenance strategy): This is more aligned with an assurance engagement where the auditor evaluates the impact of changes.

Option C (Ascertaining data center security compliance): This is an assurance activity focused on compliance.

Option D (Ensuring equipment downtime risks are managed): This implies an assurance role, as it involves verifying compliance with internal policy.

Detailed Explanation:Why Not Other Options?Conclusion: Option B is correct as it reflects a typical non-assurance engagement where the internal audit function provides advisory services on risk without providing formal assurance.