Planning the engagement

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  • #215440

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    This forum is restricted to members of the associated course(s).

    vivek bansal
    Participant

    27. Question ID: CIA 1190 II.12 (Topic: D. Determine Engagement Procedures and Prepare Work Program)
    To determine the extent of testing to be performed during fieldwork, preparing the engagement work program should be the next step after completing the

    A. Survey of company policies.
    B. Preliminary survey.correct
    C. Time budgets for specific audit tasks.
    D. Assignment of audit staff.

    It mentions the correct answer as B however as per the text book the correct answer appears to be D.

    Also, while going through the textbook & video lectures i have prepared the steps in proper order which should be as follows

    1. Understanding the context (background information – this also links back the audit universe etc)
    2. Gather the information
    3. Assessment of Risk
    4. Establish objectives
    5. Establish Scope
    6. Allocate the resources
    7. Document the work program
    8. Document the plan

    Can you pls help in clarifying the same.

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  • #215441

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    Brian Hock
    HOCK international

    The audit staff need to be assigned earlier than that since they are the ones who are doing the preliminary survey. Setting up a schedule of the staff and when the work will be performed can be done after the work program is completed, but the staff need to be at the start of the process.

    In terms of the specific order of steps – what you have seems reasonable. I am not sure the difference between 7 and 8. One issue with the specific order of things is that some steps are done simultaneously, so it is not always a linear process. For example, understanding the background, assessing risk and gathering information are very possibly all done together. As the auditor learns about the engagement client, they are at the same time automatically thinking about and seeing the risks and things that they need to accomplish and look at during the engagement. So, while we can have a general idea of the order of the steps, in reality it will not always follow that. I hope that this helped, even though it was not a concrete and specific answer about the order of things.

    #215443

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    vivek bansal
    Participant

    While i agree with the point of view that staff should be deployed or allocated much before. However, logically without knowing the depth of the work required how can somebody deploy the resources. Another question i have is at which stage decision of deployment of resources should be taken.

    Also, would appreciate if you can just adjust the sequence for me which is reasonable.

    #215444

    This forum is restricted to members of the associated course(s).

    Brian Hock
    HOCK international

    After the work program is made final, there may need to be some adjustments to the staffing, and they would be done at that point. And, realistically, there may be adjustments to the staff made during the engagement as well. We would not want that to happen, but since there are multiple engagements going on at once and new things being found all of the time, it is possible that an individual internal auditor may need to be reassigned during an engagement.

    In terms of an order of these steps, what you have is fine and I do not know how it could be changed so that it would be better. Since some things are done simultaneously, it is hard to make it a specific order. But, what you have is a good way of looking at it. Keeping in mind that it is not always linear and they may be done in different orders in some cases, or some steps may be repeated. If during the engagement we find out some unexpected things, we may need to adjust the objectives a bit as well.

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