IIA Exam IIA-CIA-Part1 Topic 7 Question 35 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 35
Topic #: 7

Under which of the following circumstances should the final audit report include a disclosure of nonconformance with the Standards?

AAn external quality assessment of the internal audit activity is performed only once every five years.

BThe internal auditor provided negative assurance, because he found no evidence of misconduct.

CThe annual internal audit plan includes some consulting engagements that are based on opportunities rather than risks to the organization.

DA new internal auditor moved into the internal audit activity from the payroll department and was immediately assigned to the payroll audit.

Show Suggested Answer

Suggested Answer: C

by Stephaine at Jul 29, 2023, 03:27 AM

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Vincent

20 hours ago

Hmm, I'm not sure about this one. I guess C could be the answer, but I'm curious why the consulting engagements based on opportunities rather than risks would be a nonconformance. Isn't that just good practice?

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Stephaine

8 days ago

I think the correct answer is C. The Standards require disclosure of any nonconformance with the Standards in the final audit report. Performing only one external assessment every five years or providing negative assurance doesn't seem like a nonconformance to me.

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Verda

22 days ago

But what about when the internal auditor provides negative assurance because they found no evidence of misconduct? Shouldn't that also be disclosed in the final audit report?

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Malcolm

25 days ago

I agree with Norah. It's important to disclose nonconformance when there is a risk of errors or misconduct due to lack of experience or expertise.

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Norah

27 days ago

I think the final audit report should include a disclosure of nonconformance with the Standards when there is a new internal auditor assigned to a task they are not qualified for.

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