To plan an internal audit assessing control effectiveness of key HR processes, documented workflows are the most useful resource compared to management reports, RCSA, or interviews. Detailed explanation of this IIA CIA Part 2 Exam sample question and correct answer.
Table of Contents
Question
An internal auditor is planning a detailed review of human resources department processes. The review objective is to ascertain the control effectiveness of key business processes. Which of the following would be most useful to facilitate planning for this engagement?
A. Human resources management reports.
B. Documented workflows.
C. Risk and control self-assessment.
D. Interview with the head of the human resources department.
Answer
B. Documented workflows.
Explanation
When planning a detailed internal audit review of the control effectiveness of key processes in the human resources department, documented workflows would be the most useful resource to facilitate the planning.
Documented workflows provide a clear, thorough mapping of the HR department’s processes from start to finish. They show the specific steps involved in each process, the sequence of activities, handoffs between people or systems, key control points, and detailed documentation. With this comprehensive view into how the processes actually operate, the internal auditor can efficiently identify the key controls to test, understand the risks and control objectives, and determine the ideal testing approach.
In contrast, while HR management reports (choice A) may provide useful performance data and metrics, they don’t give insight into the underlying process flows and controls. A risk and control self-assessment (choice C) provides the department’s own evaluation of its risks and controls, but this is more of a subjective, high-level view rather than detailed workflows. And while an interview with the head of HR (choice D) allows gathering useful context and information, this is more ad hoc compared to referring to established workflow documentation.
Therefore, using the HR department’s documented workflows, which map out the detailed processes and controls, would best facilitate the internal auditor’s planning of this engagement to determine key business process control effectiveness. The comprehensive process flows enable understanding the environment, identifying key controls to test, and designing an efficient and effective audit testing program.
IIA-CIA-Part2 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the IIA-CIA-Part2 exam and earn IIA-CIA-Part2 certification.