Learn the IIA guidance on what internal audit must communicate when issuing an overall opinion, including scope and supporting information. Prepare for the IIA-CIA-Part2 exam.
Table of Contents
Question
According to IIA guidance, which of the following must be included in the communication when the internal audit activity issues an overall opinion?
A. Consideration of reliance on other assurance providers and relevant management responses to audit findings.
B. The framework or criteria on which the opinion is based and the workpapers from control testing.
C. A summary of the information that supports the opinion and scope limitations.
D. Relevant management responses to audit findings and scope limitations.
Answer
According to IIA guidance, when the internal audit activity issues an overall opinion, it must include:
C. A summary of the information that supports the opinion and scope limitations.
Explanation
The IIA’s International Standards for the Professional Practice of Internal Auditing state that communications of an overall opinion must include:
- The scope, including the time period to which the opinion pertains
- Any scope limitations
- Consideration of all related projects including the reliance on other assurance providers
- A summary of the information that supports the opinion
The overall opinion should provide a high-level summary for the board and senior management rather than detailed information from workpapers. While management responses to audit findings are an important part of the audit process, the IIA standards do not require including them when communicating the overall opinion itself. The criteria or framework used as the basis for the opinion is also not required to be included in the overall opinion communication specifically.
In summary, the key elements the IIA requires when issuing an overall opinion are the scope and time period covered, any scope limitations, consideration of other assurance providers, and a high-level summary of the supporting information – while detailed testing results and management responses are communicated separately. Adhering to these requirements allows internal audit to provide a concise yet informative overall assessment to key stakeholders.
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.