IIA Exam IIA-IAP Topic 1 Question 13 Discussion

Actual exam question for IIA's IIA-IAP exam

Question #: 13
Topic #: 1

Which of the following best describes a compliance audit engagement?

AThe auditor reviews controls of the oil shale mining process to assess adherence to safety regulations established by local authorities.

BThe auditor analyzes the economic activity of the organization as measured and reported using international accounting standards.

CThe auditor conducts a review to provide assurance that the external service provider of maintenance for the organization has an effective risk management process.

Show Suggested Answer

Suggested Answer: A

Comprehensive and Detailed Step-by-Step Explanation:

Reference to Compliance Auditing:

Definition: Compliance audits assess adherence to external laws, regulations, or internal policies and procedures.

Standard 2130 - Control: Internal audit must evaluate the adequacy and effectiveness of controls to ensure compliance with applicable laws and regulations.

Reasoning:

Option A is correct because assessing adherence to safety regulations is a compliance activity focused on legal and regulatory conformity.

Option B (analyzing economic activity) relates more to financial auditing or accounting standards compliance, not regulatory compliance.

Option C (reviewing an external service provider's risk management process) aligns with a risk or assurance engagement, not compliance.

Impact of Compliance Audits:

Ensuring adherence to legal requirements protects the organization from regulatory penalties and enhances operational integrity.

by Lashonda at Jul 06, 2025, 09:23 AM

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Billy

2 days ago

I disagree, I believe it's C.

upvoted 0 times

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Chau

8 days ago

I think option C is the correct answer. A compliance audit is all about assessing the effectiveness of controls and risk management, which is exactly what that option describes.

upvoted 0 times

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Sunny

19 days ago

I think the answer is A.

upvoted 0 times

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