Learn the critical first step when planning an assurance engagement for the IIA CIA certification exam. Understand the planning process for audit projects.
Table of Contents
Question
Which of the following steps is conducted first in the planning stage of an assurance engagement?
A. Identification of the inherent risks of the audited process or project
B. Identification of objectives of the audited process or project
C. Identification of risk responses applied for the audited project or process
D. Identification of the design of controls of the audited process or project
Answer
The first step in the planning stage of an assurance engagement is:
B. Identification of objectives of the audited process or project
Explanation
When beginning the planning phase, the most important initial step is to clearly define the objectives and scope of the process or project being audited. The audit objectives articulate the purpose and goals of the engagement – what it seeks to achieve and assess.
Only after the objectives are established can the other planning steps be properly carried out, such as:
- Identifying inherent risks that could impact the achievement of objectives (Choice A)
- Determining what risk responses and controls are currently in place to mitigate those risks (Choices C and D)
- Developing the audit approach to test the adequacy of those controls
So while identifying risks, controls, and control design are all important components of engagement planning, they must follow the crucial first step of defining the audit’s objectives. The objectives provide the foundation that guides the rest of the planning process and the overall direction of the assurance engagement.
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.