All IIA-CIA-Part2 Test Inside IIA Questions

Comprehensive and Detailed Explanation:

The most objective way to validate hours worked is to cross-check billed hours with independent evidence of presence — such as access logs (C) from security or entry systems. This provides direct evidence that contracted personnel were on-site.

Option A (due diligence review) focuses on vendor selection, not time validation.

Option B relies on vendor-supplied data, which may be manipulated.

Option D provides insights but is subjective.

According to IIA Standard 2310, evidence must be reliable and verifiable. Access logs provide such assurance, making Option C the strongest choice.

Internal auditors must corroborate employee testimonials with tangible evidence to ensure the reliability and validity of the findings. Relying solely on testimonials without supporting evidence can lead to inaccurate conclusions. Standard 2310 – Identifying Information of the International Standards for the Professional Practice of Internal Auditing emphasizes that sufficient, reliable, relevant, and useful information should be obtained to achieve the engagement’s objectives.

Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2310 – Identifying Information.

The primary objective of an internal auditor during an exit conference is to ensure that the engagement conclusions are accurate and that the facts presented in the audit report are correct. This involves discussing the audit findings with the engagement client, clarifying any misunderstandings, and ensuring that the conclusions are based on accurate and complete information.

IIA References:

IIA Standard 2440: Disseminating Results emphasizes the importance of accurate and clear communication of audit results. The exit conference is a key part of this process, ensuring that any discrepancies or concerns are addressed before finalizing the report.

The Practice Guide on Conducting Exit Conferences highlights the importance of using the exit conference to verify that the auditor’s conclusions are well-founded and that the client understands and agrees with the findings.

Issuing an opinion on the overall effectiveness of internal control inherently carries the risk of increased audit risk and associated legal implications. This is because the opinion represents a high level of assurance, and any errors or omissions in the underlying audit work can lead to significant consequences, including potential legal liability. Therefore, auditors must be thorough and ensure that their conclusions are well-supported by the evidence obtained during the audit process.

The Institute of Internal Auditors (IIA) Practice Guide: Forming an Opinion on the Overall Adequacy and Effectiveness of Internal Controls

IIA Standard 2400 - Communicating Results