Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 42

Which of the following is the first step in the process where auditors and clients work together to evaluate the clients' system of internal control?

Answer options

• A. Assess risks.
• B. Develop questionnaires.
• C. Identify and assess controls.
• D. Identify objectives.

Correct answer: D

Explanation

The correct answer is D because identifying objectives is essential before assessing any controls or risks. Without clear objectives, the evaluation of controls and risks cannot be effectively aligned with the client's goals. The other options, while important steps, follow the establishment of objectives.