Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 10

In developing an appropriate work program for an audit engagement, the most important factor for an audit supervisor to consider is the:

Answer options

• A. Availability of records and data.
• B. Potential impact of risks.
• C. Audit personnel's knowledge and experience.
• D. Time required to complete the engagement.

Correct answer: B

Explanation

The potential impact of risks is crucial as it guides the audit supervisor in prioritizing areas that may require more attention during the audit. While the availability of records, personnel expertise, and time constraints are important, they do not outweigh the need to understand the risks involved in the audit process.