Wiley CIAexcel Exam Review 2015 Focus Notes, Part 2: Internal Audit Practice

354 Pages·2015·1.22 MB·English

by  S. Rao Vallabhaneni

Wiley CiAexcel exAm RevieW
F O C U S
N O T E S
2 0 1 5

Wiley CiAexcel exAm RevieW
F O C U S
N O T E S
2 0 1 5
PART 2
Internal Audit Practice
S. RAO VALLABHANENI
Cover image: John Wiley & Sons, Inc.
Cover design: John Wiley & Sons, Inc.
Copyright © 2015 by S. Rao Vallabhaneni. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
ISBN 978-1-119-09525-5 (Paperback); ISBN 978-1-119-09772-3 (ebk); ISBN 978-1-119-09770-9 (ebk);
ISBN 978-1-119-09526-2 (Part 1); ISBN 978-1-119-09519-4 (Part 3); ISBN 978-1-119-09533-0 (Set)
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
Contents
Preface ...............................................................................................................................vii
CIA Exam Study Preparation Resources .............................................................................ix
CIA Exam-Taking Tips and Techniques ..............................................................................xiii
CIA Exam Content Specifi cations ......................................................................................xv
Domain 1 Managing the Internal Audit Function (40–50%) .......................................1
Strategic Role of Internal Audit .................................................................................1
IIA Standards Applicable to Strategic Role of Internal Audit ..................................32
Operational Role of Internal Audit ...........................................................................64
IIA Standards Applicable to Operational Role of Internal Audit .............................127
Quality Assurance and Improvement Program ......................................................137
Risk-Based Internal Audit Plan ..............................................................................160
IIA Standards Applicable to Risk-Based Internal Audit Plan .................................180
Domain 2 Managing Individual Engagements (40–50%) .......................................206
Plan Engagements................................................................................................206
IIA Standards Applicable to Plan Engagements ....................................................214
Supervise Engagements .......................................................................................233
IIA Standards Applicable to Supervise Engagements ..........................................237
Communicate Engagement Results .....................................................................257
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IIA Standards Applicable to Communicate Engagement Results .........................267
Monitor Engagement Outcomes ...........................................................................291
IIA Standards Applicable to Monitor Engagement Outcomes ..............................292
Domain 3 Fraud Risks and Controls (5–15%) .........................................................297
Types of Fraud ......................................................................................................297
Integrating Analytical Relationships to Detect Fraud ............................................305
Interrogation or Investigative Techniques ..............................................................306
Forensic Auditing ...................................................................................................313
Use of Computers in Analyzing Data for Fraud and Crime ....................................314
Appendix Sarbanes-Oxley Act of 2002 .....................................................................317
Title II—Auditor Independence ..............................................................................318
Title III—Corporate Responsibility .........................................................................319
Title IV—Enhanced Financial Disclosures ............................................................321
About the Author..............................................................................................................323
Index ................................................................................................................................325
Contents vi
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Preface
The Wiley CIAexcel Exam Review Focus Notes 2014 are developed for each of the three parts of the
Certified Internal Auditor (CIA) exam 2014 sponsored by the Institute of Internal Auditors (IIA). The purpose
of the Focus Notes is to digest and assimilate the vast amounts of knowledge, skills, and abilities tested
on the CIA exam in a clear, concise, easy-to-read, and easy-to-use format anywhere and any time to
achieve success in the exam.
Each of the Focus Notes book topics is organized in the same way as the Wiley CIAexcel Exam Review
book topics, that is, one Focus Notes book for each of the three-part review books. This clear linkage makes
the exam study time more efficient and long-lasting, and provides the ability to recall important concepts,
tools, and techniques, and the IIA Standards tested on the CIA exams. The Focus Notes can be used with any
other study materials that you have determined works best for you to prepare for the CIA Exam. The Focus
Notes provide a quick and easy refresher to the material that you are studying.
The Wiley Focus Notes are similar to index cards and flash cards in terms of purpose. The Focus Notes
complement and supplement, not substitute, the Wiley Review books, where the former provides a summa-
rized theory and the latter provides a detailed theory.
For those students who are exclusively studying the Wiley’s preparation resources, we sincerely recom-
mend the CIA Exam candidate to study the Focus Notes and Glossary section for each part just a few weeks
before taking the actual exam for maximum retention and recall of the subject matter, assuming that the
candidate has previously studied the Wiley CIAexcel Exam Review books.
fpref.indd 7 02-05-2014 09:49:09
The Focus Notes books will be especially useful to auditors who are traveling on an audit assignment, as
well as others who are not traveling, due to their small and compact size, giving portability. The simplified sum-
maries included in this material will help you learn the essential knowledge as well as help you retain them for
years to come. The Focus Notes book can also be used as a desk reference on a post-exam basis, similar to
a dictionary.
Preface viii
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