Exam CISA topic 1 question 1132 discussion

Execution phase

Throughout the audit, audit clients will be informed of the audit process through regular status meetings and/or communications. The audit team makes every effort to discuss audit observations, potential issues, and proposed recommendations as they are identified. In some instances, it is necessary to work directly with audit clients to determine or validate the root cause and discuss ways to eliminate the root cause.

Selected answer: C According to CSUSM.EDU - “The evaluation phase of the audit is referred to as fieldwork. To assess the adequacy of internal controls and compliance, the auditor interviews key personnel, reviews departmental records and processes, and tests a sample of transactions in detail. Throughout fieldwork, the auditor discusses initial audit observations and outstanding document requests with the auditee during status meetings. It also allows the auditee to clarify or provide additional documentation to resolve any concerns or clear any preliminary observations.”

The audit life cycle typically consists of several phases, including planning, execution, reporting, and follow-up. In the reporting phase, the auditor communicates the findings and observations to the client. This involves preparing the audit report, which includes details about the audit scope, objectives, methodologies, and, most importantly, the audit observations and recommendations. During this phase, the auditor discusses the observations with the client, seeking clarification or additional information if necessary. The reporting phase is crucial for ensuring transparency, accountability, and understanding between the auditor and the client regarding the audit results.