Exam IIA-CIA-Part1 All QuestionsBrowse all questions from this exam
Question 100

When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?

    Correct Answer: A

    When planning an audit engagement, an internal auditor should first consider the impact of and exposure to fraud. This is because understanding the potential consequences and likelihood of fraud is crucial in prioritizing the areas that require more attention and in determining the appropriate audit procedures. Additionally, this assessment helps in identifying where controls might be insufficient and where fraud risks are most significant.

Discussion
vidhya19

why cant the answer be C ?

Elvoo

Understanding the organizational structure is important for identifying potential segregation of duties issues, but it is not the primary focus when first assessing fraud risk.