Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 168

According to IIA guidance, which of the following is the key planning step internal auditors should perform to establish appropriate engagement objectives prior to starting an audit engagement?

Answer options

• A. Review the organizational structure, management roles and responsibilities, and operating procedures.
• B. Evaluate management's risk assessment and the internal audit activity's risk assessment.
• C. Assess process flow and control documents used to meet regulatory requirements.
• D. Review meeting notes from discussions involving management of the area to be reviewed.

Correct answer: B

Explanation

The correct answer, B, emphasizes the importance of understanding risk assessments as they guide auditors in setting relevant objectives for the audit. Options A, C, and D, while valuable, do not directly focus on the alignment of the audit objectives with the assessed risks, which is crucial for effective planning.