ISM Exam LEAD 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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Francene

1 days ago

I think the first step should be to define the scope and objective of the review.

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