Sure Pass Exam IIA-CIA-Part2 PDF

When the board requests consulting services to gain insight regarding external risks, the appropriate engagement objective is to assess the organization's ability to minimize these risks. This involves evaluating the organization's risk management framework, including identifying external risks, assessing their potential impact, and reviewing the effectiveness of the strategies and controls in place to mitigate these risks. By doing so, internal auditors provide valuable insights into how well the organization is prepared to handle external threats and ensure the achievement of its annual objectives.

Institute of Internal Auditors (IIA) Standards: Performance Standards 2110: Governance

COSO Enterprise Risk Management (ERM) Framework: Risk Assessment and Risk Response Components

Nonstatistical sampling allows auditors to use their professional judgment to determine the sample size and select the items to be tested. Unlike statistical sampling, which relies on probabilistic methods to determine the sample size and selection, nonstatistical sampling is more flexible and can be tailored to the specific circumstances of the audit engagement.

IIA References:

IIA Standard 2320: Analysis and Evaluation suggests that internal auditors should apply appropriate methods to analyze data and draw conclusions. Nonstatistical sampling allows for the application of professional judgment, which can be advantageous in certain audit situations where rigid statistical methods may not be practical or necessary.

The Practice Guide on Sampling discusses the differences between statistical and nonstatistical sampling, highlighting that nonstatistical sampling relies more on the auditor’s judgment, which can be beneficial in certain contexts.

Given this, the correct answer is C. Nonstatistical sampling provides for the use of subjective judgment in determining the sample size.

The chief audit executive (CAE) can best illustrate the value of the internal audit activity by reporting the overall performance resulting from the internal audit balanced scorecard. The balanced scorecard includes metrics that measure the effectiveness, efficiency, and impact of the internal audit function, providing a comprehensive view of its contributions to the organization. This approach demonstrates how internal audit activities align with and support the organization's strategic objectives. References:

The IIA’s Practice Guide on Measuring Internal Audit Performance.

The IIA’s Practice Guide on Internal Audit Effectiveness.

An internal control questionnaire (ICQ) is a tool used by auditors to gather detailed information about the internal control system of an audited area. The primary purpose of an ICQ is to identify and assess risks that could prevent the area from achieving its objectives. By systematically covering various control points, the questionnaire helps the auditor evaluate the adequacy and effectiveness of controls in place and identify areas where controls may be lacking or need improvement.

The Institute of Internal Auditors (IIA) - Practice Guide: Internal Control Questionnaire