IIA Exam IIA-CIA-Part2 Topic 4 Question 98 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 98
Topic #: 4

Which of the following engagements is likely to be most appropriate for an organization that is planning an acquisition?

AA performance engagement.

BA system security engagement.

CA due diligence engagement.

DA compliance engagement.

Show Suggested Answer

Suggested Answer: C

Due diligence engagements are crucial when planning an acquisition, as they evaluate the financial, operational, and legal aspects of the target entity. This ensures informed decision-making and minimizes acquisition risks. Performance engagements (Option A) focus on efficiency and effectiveness of operations, while system security engagements (Option B) and compliance engagements (Option D) do not address the comprehensive assessment required for acquisitions. The CIA syllabus emphasizes due diligence as a specialized type of consulting engagement (Part 2: Section II).

by Tenesha at Mar 08, 2025, 07:58 PM

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Domingo

24 days ago

I think a combination of due diligence and compliance engagements would be the most comprehensive approach for an acquisition.

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Patrick

25 days ago

That's a good point, Lisbeth. Compliance is important too, but due diligence specifically focuses on the acquisition process.

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Lisbeth

29 days ago

But wouldn't a compliance engagement also be important to ensure the organization is meeting all legal requirements?

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Hannah

1 months ago

I'm gonna have to go with option C, the due diligence engagement. It's like a supermarket sweep for companies - gotta make sure you're not bringing home any spoiled goods!

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Junita

1 months ago

Due diligence all the way! You don't want to end up like that guy who bought a company and found out they were secretly running a fight club in the basement, do you?

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Ling

17 days ago

Definitely! Due diligence is crucial to avoid any surprises.

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Ceola

25 days ago

C) A due diligence engagement.

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Domingo

1 months ago

I agree with Patrick, due diligence is crucial to assess the risks and opportunities of the acquisition.

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Vicki

1 months ago

A due diligence engagement is the obvious choice here. I mean, do you really want to acquire a company without knowing what skeletons are hiding in their closet?

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Xochitl

1 months ago

Definitely a due diligence engagement. You need to know what you're getting into before you sign on the dotted line. Don't want any unpleasant surprises, am I right?

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