Student Forums CIA Part 1: Essentials of Internal Auditing Section II: Independence and Objectivity Difference between “drafting” procedures and “recommending” procedures

Difference between “drafting” procedures and “recommending” procedures

  • This topic has 4 replies, 3 voices, and was last updated 1 year ago by Brian Hock.
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  • #142692

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

    Denny Benjamin
    Participant

    Hi Brian,

    Good day to you!

    Can you explain the difference between “drafting” procedures (Question ID: CIA 593 I.3 (Topic: B. Impairments to Independence)) and “recommending” procedures (Question ID: CIA 1195 I.47 (Topic: B. Impairments to Independence))?

    I guess I am trying to find the boundary line between what will impair auditor objectivity and what does not.

    Looking forward to learning from you.

    Thank you.

    Denny

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  • #142701

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    Brian Hock
    HOCK international

    Hello, Denny,

    The difference between the two is that when the IAA makes recommendations, the assumption is that those recommendations have to be accepted or rejected by management. So, it is, in essence, a decision by management to make those recommendations active, and management can change them or refuse them. It is this additional step of approval by management that is key.

    In the question about drafting procedures, there is no reference to the approval process (though, I agree that drafting kind of implies that they are a recommendation).

    You are correct that this is a fine distinction between the two. Also, in the question in which drafting is the correct answer, i is clearly the best answer of the 4 choices because the other 3 choices are all absolutely fine. So, the answer choice that is the correct choice may not be perfectly clearly written, it is the best choice of those that are given.

    Does this help?

    Brian

    #143024

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    Denny Benjamin
    Participant

    Hi Brian,

    It does help. Thank you.

    Denny

    #218147

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    btestin
    Participant

    Brian,
    I have a similar question about objectivity for
    CIA 1190 I.38
    An appropriate internal auditing role in a feasibility study is to:
    a) Determine the requirements for preparing a manual of specifications.
    b) Participate in the drafting of recommendations for the computer acquisition and implementation. wrong
    c) Ascertain if the feasibility study addresses cost-benefit relationships. correct
    d) Serve on the task force for the preliminary survey.

    I thought it was okay to draft recommendations about internal controls for computer acquisition and implementation. I thought reviewing the feasibility study to address cost-benefit relationships to be more of a management function, such as a quality review committee.

    Am I reading too much into the question? Could you clear up any misunderstanding?

    Thank you,
    Becky

    • This reply was modified 1 year ago by btestin.
    • This reply was modified 1 year ago by btestin.
    #218157

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    Brian Hock
    HOCK international

    Hello, Becky,

    The issue in this question is that the internal auditor is not an expert in the area of computer acquisition, and therefore that is not really a role that is appropriate for them because that is not their area of expertise.

    Brian

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