IIA Exam IIA-CIA-Part1 Topic 4 Question 51 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 51
Topic #: 4

Which of the following statements best describes a functional difference between external auditors and internal auditors?

AInternal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.

BInternal auditors provide assurance about the sufficiency of controls to manage risks. Including risks of failure to achieve future goals, and external auditors evaluate the accuracy and understandability of financial reporting.

Cinternal auditors are always employed by the organization, rather than outsourced, and external auditors are never employed by the organization but contracted independently.

DInternal auditors are most directly concerned with the detection of fraud, while external auditors are most directly concerned with the prevention of fraud.

Show Suggested Answer

Suggested Answer: C

by Howard at May 23, 2024, 05:44 PM

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Sommer

1 months ago

Option C is just plain wrong. It's a common misconception that internal auditors are always employed by the organization, when in fact they can be outsourced as well. Gotta watch out for those tricky answer choices!

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Micah

12 days ago

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Thurman

14 days ago

B) Internal auditors provide assurance about the sufficiency of controls to manage risks. Including risks of failure to achieve future goals, and external auditors evaluate the accuracy and understandability of financial reporting.

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Anglea

17 days ago

A) Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.

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Blair

2 months ago

Haha, I'm sure some internal auditors would love to be 'most directly concerned with the detection of fraud' like option D suggests. But in reality, that's more of an external auditor's role.

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Gearldine

17 days ago

Haha, I'm sure some internal auditors would love to be 'most directly concerned with the detection of fraud' like option D suggests. But in reality, that's more of an external auditor's role.

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Dana

26 days ago

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Nicolette

1 months ago

A) Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.

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Casey

2 months ago

I agree with Herschel. Option B captures the key distinction that internal auditors are more concerned with the overall control environment and risk management, while external auditors are focused on the reliability of financial information.

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Jacqueline

2 months ago

I agree, internal auditors focus on control environment and risk management, while external auditors focus on financial information reliability.

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Daniel

2 months ago

I think option B is the best description of the difference between internal and external auditors.

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Yuki

2 months ago

I'm not sure, but I think D is also a valid option.

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Herschel

2 months ago

Option B seems to be the most accurate description of the functional difference between internal and external auditors. Internal auditors focus on the adequacy of controls and risk management, while external auditors evaluate the accuracy and transparency of financial reporting.

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