Exam IIA-CIA-Part2 All QuestionsBrowse all questions from this exam
Question 213

During the quarterly review of the internal audit activity's performance, the chief audit executive (CAE) notes that actual engagement hours consistently exceed the budget. Which of the following strategies would most likely help the CAE address this problem?

The budget should consider time spent on similar engagements.

The budget should consider the proficiency of the assigned auditors.

The budget estimate should provide for unexpected delays.

The budget should be specific as to time for each work assignment.

    Correct Answer: A

    To address the issue of actual engagement hours consistently exceeding the budget, the CAE should consider both the time spent on similar engagements and the proficiency of the assigned auditors. By analyzing historical data from similar past engagements, the CAE can create a more accurate budget estimate. Additionally, considering the proficiency of auditors while budgeting is crucial as more experienced auditors can complete tasks more efficiently, potentially requiring fewer hours.

Discussion
Vietnguyenhoang01

Can someone explain this choice?

chachae

seems like all the statements are correct