Domain 1 IA Operations - IA Mgt Functions

Question 1

Audit Mgt Functions

Answer 1

Planning
Organizing
Directing
Monitoring

Question 2

IA Planning

Answer 2

Requires developing and periodically revising the comprehensive audit plan and ensuring adequate audit coverage

Question 3

IA Organising

Answer 3

Decide how to structure the audit function and how to staff the audit function with mgt levels and job positions.
Audit manual is also developed describing audit policies, procedures, and continuing education guidelines to run the audit department.
CAE can decide whether audit function should be organised with tall structure (too many job levels) or flat structure (too few job levels).

Question 4

IA Directing

Answer 4

Lead entire audit department

Motivate towards common goal of delivering audit products and services.

Question 5

IA Monitoring

Answer 5

Formal continuous monitoring practices
Should include written std to ensure consistent application of monitoring processes throughout audit function
Critical issues identified through monitoring process should be communicated to the audit committees.

Question 6

How is the audit plan accomplished?

Answer 6

It is accomplished either through a multiyear plan approach with the plan revised annually or through an approach that uses a framework to evaluate risks annually, focusing on most significant risks

Question 7

What is a potential audit planning risk?

Answer 7

Higher risk auditable areas could be included in a lower risk auditable area due to human mistakes, poor judgment and incomplete risk assessment.

Question 8

What is common practise when auditing business functions?

Answer 8

Audit on a cycle-based plan every 3 year or 4 year audit cycle.
But high risk areas should be audited at least every year or even more often.
Audit coverage should be appropriate based on the risk assessment.