Qualification in Internal Audit Leadership (QIAL) — Question 3

Which of the following statements is true regarding engagement planning?

Answer options

• A. The engagement objectives are the boundaries for the engagement, which outline what will be included in the review.
• B. The risk-based objectives of the engagement can be determined once the scope of the engagement has been formed.
• C. For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined.
• D. For an assurance engagement, once the scope is established and testing has begun, the scope cannot be modified.

Correct answer: A

Explanation

Option A is correct because it accurately describes how engagement objectives set the parameters for what the review will cover. Option B is incorrect as it suggests that risk-based objectives can be set after determining scope, which is not ideal. Option C is wrong because planning should occur before setting objectives and scope. Option D is false since the scope can sometimes be modified during an assurance engagement, even after testing begins.