Audit Planning - Auditing in CIS Environment

A good audit planning will help the auditor to, except:

• minimize its risks,

• improve audit efficiency

• meet its objective at the minimum effort

• deter fraud

The planning process involves the following, except

• •Identifying the tasks to be performed in the course of an audit

• •Allocation of those tasks to specific auditors

• •Deciding when a task should commence

• •Qualification of the duration of each individual task based on the auditor allocated

The overall intention of a specific audit may be classified as reviewing the design of the internal control system for adequacy, tests of compliance with the designed control system, and evaluation of the effectiveness of the implementation of the control system.

• True

• False

The Elements of Audit Planning includes the following, except:

• ◦For each KPA, performance objectives must be established

• Final communication with the auditees and others involved in the audit

• ◦Preparation of the preliminary audit program.

• The planning of the audit report

THE STRUCTURE OF THE AUDT PLAN STARTS FROM:

• •The internal control description and analysis,

• •preliminary survey of operations

• •the expanded tests control systems,

• •audit evaluation.

THE STRUCTURE OF THE AUDIT PLAN ENDS ON:

• •the expanded tests control systems

• •The development of findings and recommendations,

• •the report production,

• •audit evaluation

The auditor may recommend to make no changes in the control system where controls are deemed to be both adequate for a given level of a risk and effective in controlling that risk and the current control system is seen to be cost effective.

• True

• False

The auditor may improve control and reduce risk either by modifying current controls or by adding new ones.

• True

• False

For those areas where risk is not at acceptable levels, but control is impractical or not cost-effective to implement, the auditor may recommend the transfer of risk either by insurance or outsourcing.

• True

• False

Should there remain an element of risk uncovered by the system of internal control but nevertheless at an unacceptable level, the auditor may be able to change that would improve the rate of return for accepting that level of risk.

• True

• False