Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 58

The chief audit executive of a large publicly held bank is using a risk based approach to update the annual audit plan. Which of the following sources of information will have the least impact on the plan?

Answer options

• A. The 12 month forecast of commercial property values.
• B. Recent changes to the bank's strategic plan.
• C. Regulatory changes impacting capitalization for all publicly traded banks.
• D. Continuous changes in the prime lending rate set by the country's central bank.

Correct answer: A

Explanation

The 12-month forecast of commercial property values is less likely to significantly affect the audit plan compared to the other options. Recent changes to the bank's strategic plan, regulatory changes, and fluctuations in the prime lending rate have more direct implications on the bank's risk profile and operational focus, making them more critical for the audit strategy.