Internal auditors generally determine the priority of the areas within the engagement scope by assessing the risk of those areas. This involves estimating the likelihood of a risk occurring and the potential impact of that risk on the organization. High-risk areas with a high likelihood of occurrence and significant impact are prioritized to ensure that critical risks are addressed promptly. This risk-based approach to prioritization helps ensure that the audit resources are focused on the most significant areas, enhancing the effectiveness and efficiency of the audit. : The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2010 - Planning
The observation in question includes the condition ("no approved credit risk management policy" and "17 out of 50 contacts showed clients with a poor credit history") and the cause (the subsidiary concluding contacts with high-risk clients). However, it lacks the effect, which should explain the potential or actual impact of this deficiency on the organization (e.g., financial losses, increased credit risk). Additionally, it is missing the criteria, which should reference the specific rules or policies that are not being followed (e.g., the organization's credit risk management policy requirements). Including these components would provide a complete and actionable observation. : The Institute of Internal Auditors (IIA) - Practice Guide: Audit Reports and Working Papers
Question 358
內部稽核員使用五屬性方法來記錄倉庫運輸過程中的缺陷。工作底稿中將包含下列哪些屬性？
Correct Answer: B
The five-attribute approach to documenting deficiencies typically includes the following attributes: condition (the current state or issue identified), cause (the reason for the condition), effect (the impact or potential impact of the condition), and recommendation (suggested actions to address the deficiency). These attributes provide a comprehensive framework for understanding the deficiency, its implications, and the steps needed to rectify it, ensuring clear and actionable audit findings.References: * The Institute of Internal Auditors (IIA) - Practice Guide: Documenting Information
Question 359
在評估依賴外部審計師工作的可能性時，首席審計執行長該做什麼？
Correct Answer: C
When the chief audit executive (CAE) evaluates the possibility of relying on external auditors' work, the primary focus should be on examining the objectivity and any perceived or actual conflicts of interest that might affect the external auditors' work. Ensuring that the external auditors are objective and free from conflicts is crucial for determining whether their work can be relied upon by the internal audit activity. Detailed Explanation: IIA Standard 2050 - Coordination and Reliance: This standard requires that the internal audit activity coordinates its efforts with external auditors to ensure proper coverage and minimize duplication of efforts. When relying on external auditors, the CAE must assess the external auditors' objectivity and independence. Objectivity and Conflicts of Interest: Objectivity refers to the unbiased mental attitude that allows external auditors to perform their work with integrity and impartiality. Conflicts of interest, whether perceived or actual, can compromise this objectivity. The CAE needs to ensure that external auditors are free from any relationships or interests that could affect their judgment. IIA Practice Advisory 2050-2: The advisory suggests that the internal audit activity should evaluate the competence, objectivity, and independence of external auditors before relying on their work. A thorough examination of potential conflicts of interest is essential to ensure that the reliance on their work is justified. Why Not Other Options? Option A (Perform comprehensive background checks): While background checks may be useful, the primary focus should be on objectivity and conflicts of interest. Option B (Recalculate all financial calculations): This approach is excessive and unnecessary if the external auditors' work can be relied upon. Option D (Review audit tests in previous audits): While reviewing previous work is important, it does not address the key issue of objectivity and independence. Conclusion: Option C is correct because the CAE must focus on ensuring that external auditors are objective and free from conflicts of interest, which is essential for relying on their work, in accordance with IIA standards.
Question 360
根據 IIA 指南，內部稽核師應如何在相關內部稽核業務期間應用從內部諮詢業務獲得的任何相關資訊？
Correct Answer: C
According to IIA guidance, internal auditors should use relevant information obtained during a consulting engagement to inform and enhance their evaluation of internal controls during related audit engagements. This is because the knowledge gained from consulting activities can provide valuable insights into the functioning of controls and processes, which can be applied when assessing their effectiveness in a subsequent audit. IIA Reference: IIA Standard 1220: Due Professional Care indicates that internal auditors should consider all relevant information available to them when making judgments and recommendations. This includes information obtained from consulting engagements. The IIA's Practice Guide on Consulting Engagements advises that while internal auditors must maintain objectivity, they can and should use knowledge gained from consulting engagements to enhance the value and accuracy of their assurance work.
