IIA Exam CPEA Topic 1 Question 73 Discussion

Actual exam question for IIA's CPEA exam

Question #: 73
Topic #: 1

[All CPEA Questions]

An independent auditor might consider the procedures performed by the internal auditors because:

AThey are employees whose work must be reviewed during substantive testing

BThey are employees whose work might be relied upon

CTheir work impacts upon the cost/benefit tradeoff in evaluating inherent limitations

DTheir degree of independence may be inferred by the nature of their work

Show Suggested Answer

Suggested Answer: B

by Deeanna at Apr 09, 2024, 07:53 AM

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Charlesetta

5 months ago

In conclusion, a thorough review of the procedures performed by internal auditors is essential for the external auditor to provide an unbiased opinion on the financial statements.

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Erin

5 months ago

So, it's important for the independent auditor to assess the quality and independence of the internal audit function.

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Anglea

6 months ago

However, we should also remember that internal auditors are employees whose work must be reviewed during substantive testing to ensure accuracy.

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Noel

6 months ago

I agree, their work might be relied upon by the external auditor to gain assurance over the financial statements.

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Armando

6 months ago

That's true, internal auditors play a crucial role in assessing risks and controls within the organization.

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Raymon

6 months ago

I think an independent auditor might consider the procedures performed by the internal auditors because their work impacts upon the cost/benefit tradeoff in evaluating inherent limitations.

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Jamal

6 months ago

That's possible. It's important for the independent auditor to consider all aspects when evaluating the work of internal auditors.

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Timothy

6 months ago

So, do you think the correct answer could be a combination of all these factors?

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Clay

6 months ago

I think the degree of independence of internal auditors can be inferred by the nature of their work.

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Jamika

7 months ago

I believe their work impacts the cost/benefit tradeoff in evaluating inherent limitations as well.

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Farrah

7 months ago

I agree, it's important to make sure the internal auditors' work is reliable.

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Jamal

7 months ago

I think an independent auditor might consider the procedures performed by the internal auditors because their work must be reviewed during substantive testing.

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Definitely, they're trying to make sure we understand the whole picture when it comes to the relationship between internal and external auditors. I think B is the clearest answer, but the other options are good distractors to test our depth of knowledge.

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Orville

8 months ago

Haha, yeah option D is a bit of a curveball. Trying to slip in that independence angle. I guess the exam writer is trying to see if we're really thinking about all the nuances here.

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Marion

8 months ago

Yeah, I'm leaning towards B as well. The other options seem a bit more tangential. Although I do like how option D sneaks in the concept of the internal auditors' independence, which is an important factor.

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Carlota

8 months ago

I'd say the wording is fairly straightforward. Option B seems like the most direct answer - the independent auditor would consider the work of internal auditors because they can potentially rely on it, as long as it's deemed reliable.

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Argelia

8 months ago

I agree, this seems like a pretty standard question. But I'm curious to hear what others think - do you think the wording of the options is tricky or is it pretty clear-cut?

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Lang

7 months ago

I believe option D) is the proper choice here

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Shad

7 months ago

I'm leaning towards option B) myself

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Krystina

7 months ago

I think option A) makes the most sense

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Joni

8 months ago

I think this is a straightforward question testing our understanding of the role of internal auditors in an independent audit. The key points are about the independence and reliability of internal auditors' work.

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IIA Exam CPEA Topic 1 Question 73 Discussion

Contribute your Thoughts:

Charlesetta

Erin

Anglea

Noel

Armando

Raymon

Jamal

Timothy

Clay

Jamika

Farrah

Jamal

Kendra

Orville

Marion

Carlota

Argelia

Lang

Shad

Krystina

Joni