Free IIA-CIA-Part2 Questions Attempt

Generalized audit software (GAS) is a type of automated audit tool commonly used by internal auditors to perform a wide range of audit tests, including the validation of calculations and the simulation of transactions. GAS allows auditors to analyze large volumes of data, perform complex calculations, and create simulations to test the accuracy and completeness of the transactions. This makes it the most appropriate tool for validating calculations in the organization's building application. References:

The IIA’s Global Technology Audit Guide (GTAG) on Data Analytics and Generalized Audit Software.

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?

Probability-proportional-to-size (PPS) sampling, also known as monetary unit sampling, is most appropriate for measuring the total misstatement in an accounts payable ledger. This method is used to determine the likelihood of individual items being selected based on their size, with larger items having a higher probability of being selected. This is particularly useful in identifying overstatements and misstatements in financial records, such as accounts payable, where the monetary value of transactions is a critical factor.

Institute of Internal Auditors (IIA), Practice Guide – Auditing Sampling.