Learn how internal auditors gather key information during the planning phase of assurance engagements. Discover which technique best helps auditors assess an area’s objectives.
Table of Contents
Question
During the planning phase of an assurance engagement, an internal auditor seeks to gain an understanding of how well the area under review is accomplishing its objectives. Which of the following information-gathering techniques is the auditor most likely to use?
A. A review of the key performance indicators of the area under review.
B. A walkthrough of the key processes of the area under review.
C. An interview with the manager regarding the area’s business plan.
D. A review of previous audit and follow-up results of the area under review.
Answer
During the planning phase of an assurance engagement, the internal auditor’s primary goal is to evaluate how well the area under review is meeting its objectives. To achieve this, the auditor needs to collect relevant information that provides insight into the performance and operations of the area.
Out of the options provided, the most likely information-gathering technique the auditor would use is:
A. A review of the key performance indicators (KPIs) of the area under review.
Explanation
Key Performance Indicators (KPIs) provide measurable data related to the specific objectives and goals of the area under review. By analyzing KPIs, the auditor can quickly assess how effectively the area is achieving its targets and meeting organizational goals. This technique helps the auditor understand performance trends, identify potential gaps or areas of improvement, and align the audit objectives with the organization’s strategic priorities.
While the other options can provide valuable context, they serve different purposes in the audit process:
B. Walkthrough of key processes: This helps the auditor understand how tasks are performed, but it doesn’t directly assess performance in relation to objectives.
C. Interview with the manager: This can offer insight into strategies and plans but may be subjective and doesn’t provide the measurable data needed to assess success.
D. Review of previous audit and follow-up results: This looks at past issues but may not give a current assessment of how well objectives are being achieved.
Therefore, Option A is the most effective technique for gaining a clear understanding of whether the area under review is accomplishing its objectives during the planning phase of an assurance engagement.
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