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ISM LEAD Exam - Topic 6 Question 27 Discussion

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?
C) Define the scope and objective of the review
A) Select a representative sample of transactions to review
B) Review all applicable policies and procedures
D) Conduct a survey of department personnel asking them to self-assess their level of compliance

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?

Show Suggested Answer Hide 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
9 months ago
Wait, are we really considering self-assessments? That seems risky.
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Alexia
9 months ago
Definitely agree, scope and objective come first.
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Alline
10 months ago
A representative sample is important, but not the first step!
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Devora
10 months ago
Reviewing all policies first makes more sense to me.
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Zena
10 months ago
I think defining the scope is crucial first!
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Rhea
10 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
11 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
11 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
11 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
11 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
11 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
11 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
12 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
1 year 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
1 year 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
12 months ago
C) Define the scope and objective of the review
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Dyan
1 year 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
1 year ago
That's a good point, Jimmie. Reviewing policies and procedures can provide a framework for the audit.
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Jimmie
1 year ago
But wouldn't it also be helpful to review all applicable policies and procedures first?
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Shoshana
1 year 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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Beata
1 year ago
A) Select a representative sample of transactions to review
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Alex
1 year ago
C) Define the scope and objective of the review
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Dyan
1 year ago
I agree with Francene. It's important to have a clear understanding of what needs to be reviewed.
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Francene
1 year ago
I think the first step should be to define the scope and objective of the review.
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