How should an internal auditor approach preparing a detailed risk assessment during engagement planning?

The correct answer is C. Work with management of the function being reviewed, as management would be most familiar. When preparing a detailed risk assessment during engagement planning, the internal auditor should collaborate with the management of the function being reviewed. Management has the most in- depth knowledge of their business objectives, processes, and the associated risks. This…

Conducting Internal Audit Engagements

Question

Options

AComplete the risk assessment independently to prevent conflicts of interest with the function being
BWork with external auditors to ensure that the risk assessment includes items reflected on the
CWork with management of the function being reviewed, as management would be most familiar
DConsult with the compliance department, which typically has a more comprehensive view of the

How the community answered

(22 responses)

A
14% (3)
B
9% (2)
C
73% (16)
D
5% (1)

Explanation

When preparing a detailed risk assessment during engagement planning, the internal auditor should collaborate with the management of the function being reviewed. Management has the most in- depth knowledge of their business objectives, processes, and the associated risks. This cooperation ensures that the risk assessment is comprehensive, accurate, and relevant to the specific context of the function under review. It also helps in identifying any potential areas of concern that might not be evident to external parties.

Topics

#risk assessment#engagement planning#management collaboration#audit independence

Community Discussion

No community discussion yet for this question.

Full IIA-CIA-PART2 Practice