ISM LEAD Exam - Topic 6 Question 27 Discussion

Actual exam question for ISM's LEAD exam

Question #: 27
Topic #: 6

[All LEAD Questions]

A supply management department has an upcoming audit of its procurement system. The department supervisor is conducting a pre-audit assessment to validate compliance with company policies and procedures. Which of the following is the FIRST step the supervisor should take?

ASelect a representative sample of transactions to review

BReview all applicable policies and procedures

CDefine the scope and objective of the review

DConduct a survey of department personnel asking them to self-assess their level of compliance

Show Suggested Answer

Suggested Answer: C

The first step in conducting a pre-audit assessment is to define the scope and objective of the review. This involves clarifying what the audit will cover, the specific objectives to be achieved, and the criteria for evaluating compliance with company policies and procedures. Defining the scope and objectives provides a clear framework for the assessment, ensuring that the review is focused and effective.

Sawyer, L. B., Dittenhofer, M. A., & Scheiner, J. H. (2003). Sawyer's Internal Auditing: The Practice of Modern Internal Auditing. The Institute of Internal Auditors.

Moeller, R. R. (2013). Executive's Guide to IT Governance: Improving Systems Processes with Service Management, COBIT, and ITIL. Wiley.

by Gabriele at Jul 11, 2025, 03:09 PM

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Cassi

2 months ago

Wait, are we really considering self-assessments? That seems risky.

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Alexia

3 months ago

Definitely agree, scope and objective come first.

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Alline

3 months ago

A representative sample is important, but not the first step!

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Devora

3 months ago

Reviewing all policies first makes more sense to me.

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Zena

3 months ago

I think defining the scope is crucial first!

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Rhea

4 months ago

Conducting a survey sounds like it could be useful, but I feel like it might not be the best first step. I think we need a clearer direction first.

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Nieves

4 months ago

I practiced a similar question, and I chose to select a representative sample of transactions. But now I'm wondering if that should come after defining the scope.

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Trina

4 months ago

I'm not entirely sure, but I remember something about reviewing policies first. It might help to ensure everything aligns with what the company expects.

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Lashon

4 months ago

I think the first step should be to define the scope and objective of the review. It makes sense to know what you're looking for before diving into the details.

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Derick

4 months ago

I'm leaning towards selecting a representative sample of transactions to review. That seems like it would give you a good snapshot of the overall compliance without having to go through every single thing. But I could see the policy review being important too. Tough call!

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Viola

5 months ago

Okay, let's see. I think the key here is to establish a clear plan and framework for the assessment. So I'd say the first step is to define the scope and objectives - that way you know exactly what you're looking for and can structure the rest of the review accordingly.

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Mee

5 months ago

Hmm, I'm a bit unsure here. I was thinking the first step might be to define the scope and objectives of the review, but now I'm second-guessing myself. I'll have to think this through carefully.

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Berry

5 months ago

This seems like a straightforward question about the proper steps for a pre-audit assessment. I'm pretty confident the first step is to review all the relevant policies and procedures.

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Dorinda

7 months ago

Haha, I bet the department supervisor is just winging it and hoping no one notices. 'Self-assess their level of compliance'? Good one, D!

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Penney

7 months ago

I agree with Shoshana. C is definitely the way to go. You can't just start randomly reviewing transactions without knowing what you're looking for.

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Ahmed

5 months ago

C) Define the scope and objective of the review

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Dyan

7 months ago

I still think defining the scope and objective should come first to ensure the audit is focused and efficient.

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Francene

7 months ago

That's a good point, Jimmie. Reviewing policies and procedures can provide a framework for the audit.

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Jimmie

7 months ago

But wouldn't it also be helpful to review all applicable policies and procedures first?

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Shoshana

7 months ago

The correct answer is C. Defining the scope and objective of the review is the first step in a pre-audit assessment. It provides a clear framework for the rest of the process.

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