Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 172

An internal auditor utilizes a questionnaire to evaluate controls related to the financial close processes within a hospital system. The questionnaire was developed internally by management and requires a "yes" or "no" response from local hospital management regarding their adherence to the mandated month-end close processes. Which of the following would be considered the greatest benefit to utilizing the checklist responses to determine the audit scope?

Answer options

• A. The questionnaire covers standard operating procedures that were developed centrally.
• B. The questionnaire is clear and reliable, as each question requires a simple "yes" or "no" response.
• C. The questionnaire results save the auditor's time, as "yes" responses can be excluded from the audit scope.
• D. The questionnaire produces quantifiable results covering all risks associated with close processes

Correct answer: C

Explanation

Option C is correct because using the 'yes' responses allows the auditor to focus on areas that may need further scrutiny, thus saving time and effort. Options A and D, while beneficial, do not specifically address the efficiency gained through the exclusion of 'yes' responses. Option B, although highlighting the clarity of the questionnaire, does not provide a direct benefit in defining the audit scope.