IIA Exam IIA-CIA-Part2 Topic 4 Question 69 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 69
Topic #: 4

[All IIA-CIA-Part2 Questions]

How do internal auditors generally determine the priority of the areas within the engagement scope?

ABy calculating the period of time when the area was last audited try internal auditors

BBy totaling the monetary value of the processes within the organization in the scope of the engagement

CBy counting the number of red flags indicating the potential fraudulent activities within the area.

DBy estimating the likelihood of a risks occurring and the potential impact of that risk on the organization

Show Suggested Answer

Suggested Answer: C

by Golda at Dec 27, 2023, 05:04 AM

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Chun

3 months ago

Wait, we're not supposed to just throw darts at a list of areas and audit whatever they land on? Dang, there goes my foolproof strategy.

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Oliva

28 days ago

D) By estimating the likelihood of a risks occurring and the potential impact of that risk on the organization

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Rene

1 months ago

C) By counting the number of red flags indicating the potential fraudulent activities within the area.

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Tammy

2 months ago

B) By totaling the monetary value of the processes within the organization in the scope of the engagement

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Yuki

2 months ago

A) By calculating the period of time when the area was last audited try internal auditors

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Peggy

3 months ago

But what about considering the monetary value of processes? Wouldn't that also be important?

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Graham

3 months ago

I agree with Colton. It's important to focus on areas with higher risk impact.

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Shaun

3 months ago

Option B is interesting, but I'm not sure it's the best approach. Focusing solely on monetary value could lead to overlooking important non-financial risks.

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Luisa

2 months ago

D) By estimating the likelihood of a risks occurring and the potential impact of that risk on the organization

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Clorinda

2 months ago

A) By calculating the period of time when the area was last audited try internal auditors

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Elenora

3 months ago

I think considering the likelihood and impact of risks is a more comprehensive approach.

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Lashandra

3 months ago

I agree, we shouldn't overlook non-financial risks.

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Colton

3 months ago

I think internal auditors determine priority based on the likelihood of risks occurring.

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Son

3 months ago

While C could be useful, I think it's a bit too narrow-minded. Internal auditors need to consider the big picture, not just hunt for fraud.

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Millie

3 months ago

I agree with Eden. Prioritizing risks based on their potential impact is a widely accepted internal audit best practice.

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Lashanda

3 months ago

But what about the monetary value of processes? Shouldn't that also be considered?

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Eden

3 months ago

Option D seems to be the most logical choice. Assessing the likelihood and impact of risks is the key to determining audit priorities, not just looking at past audits or potential fraud indicators.

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