Which of the following lists the audit activities in the order in which they would generally be completed during a preliminary survey?
I. Write detailed audit procedures.
II. Identify client objectives, goals, and standards.
III. Identify risks and controls intended to prevent associated losses.
IV. Determine relevant engagement objectives.
First, it is essential to identify client objectives, goals, and standards to understand the overall purpose and direction of the client's operations. Next, identifying risks and controls intended to prevent associated losses naturally follows, as it builds on the understanding of the client's objectives to determine what might prevent achieving these objectives. Following this, determining relevant engagement objectives is logical; it aligns the audit's goals with the client's objectives and identified risks. Lastly, writing detailed audit procedures comes after setting the engagement objectives to ensure the procedures are designed to meet these objectives and address the key risks identified.
I guess the answer should be D, as one would identify all objectives prior to identifying risks and taking actions to mitigate them. Can someone please elaborate me on this?
In implementation guide for it is written: Internal auditors may hold discussions with the management of the area under review to understand the strategies and objectives. These discussions may be supplemented by a review of strategy papers, business plans, budgets, and minutes of meetings. Significant risks may be identified in the supporting documentation. Internal auditors can use their understanding of the business and knowledge of the environment to independently evaluate the risk factors considered by business management. Understanding the strategies, objectives, and risks of the area or process to be audited can help internal auditors to evaluate the adequacy and effectiveness of the its governance, risk management, and control processes. Internal auditors may review the organization structure, management roles and responsibilities, management reports, and operating procedures to gain an understanding of the governance, risk management, and control processes. It is also important for internal auditors to review meeting notes during the planning phase of an engagement to determine whether any additional tests should be added to the work program.
I understand it is preliminary survey in the planning stage, so writing detailed audit procedures must be the last one, so it is B or C and since you have to start with Identifying client objectives, goals, and standards in a new audit planning, then the correct answer is B.
All of question is right?
A is correct. Confirmed with Gleim's book.
Would you please send me in which part you found the question in Gleim's Book which said A is correct? Thank you.