Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 21

Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?

Answer options

• A. Determining the scope.
• B. Reviewing internal controls.
• C. Testing.
• D. Evaluating findings.

Correct answer: A

Explanation

Inadequate risk assessment primarily affects the determination of the audit scope, as it can lead to overlooking significant risks that need to be addressed. While reviewing internal controls, testing, and evaluating findings are important, they rely on a well-defined scope to direct the audit process effectively.