Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 186

Which of the following is an example of internal auditors applying data mining techniques for exploratory purposes?

Answer options

• A. Internal auditors perform reconciliation procedures to support an external audit of financial reporting.
• B. Internal auditors perform a systems-focused analysis to review relevant controls.
• C. Internal auditors perform a risk assessment to identify potential audit subjects as input for the annual internal audit plan.
• D. Internal auditors test IT general controls with regard to operating effectiveness versus design.

Correct answer: B

Explanation

Option B is correct because it involves a systems-focused analysis, which aligns with exploratory data mining techniques to evaluate controls. The other options do not focus on exploration; they either pertain to compliance (A and D) or planning (C) without utilizing data mining for exploratory analysis.