Wiley CIA Exam Review 2020 Focus Notes, Part 2

S. RAO VALLABHANENI is an educator, author, publisher, consultant, and practitioner in business with more than thirty years of management and teaching experience in auditing, accounting, manufacturing, and IT consulting in both public and private sectors. He is the author of more than sixty trade books, study guides, review guides, monographs, audit guides, and articles in auditing and IT. He holds twenty-four professional certifications in business management in Accounting, Auditing, Finance, Information Technology, Manufacturing, Quality, and Human Resource fields.

Preface ix


CIA Exam Content Syllabus and Specifications xi


CIA Exam-Taking Tips xviii


Professional Standards 1


Performance Standards 2


Domain 1: Managing the Internal Audit Activity (20%) 26


Internal Audit Operations 27


Risk-Based Internal Audit Plan 39


Assurance Engagements 51


Consulting Engagements 285


Coordination between Internal Auditors and Others 341


Communicating and Reporting 357


Domain 2: Planning the Engagement (20%) 366


Objectives and Scope of Audit Engagement 367


Risk Assessment for Auditable Areas 375


Engagement Work Program 391


Audit Resources for Audit Engagements 398


Domain 3: Performing the Engagement (40%) 400


Information-Gathering Tools and Techniques 401


Sampling Methods and Statistical Analysis 417


Data Analysis and Evaluation Techniques 470


Audit Analytics 503


Audit and Legal Evidence 549


Audit Workpapers 556


Engagement Supervision 561


Domain 4: Communicating Results and Monitoring Progress (20%) 565


Communication Quality and Elements 566


Audit Reporting Process 587


Residual Risk and Risk Acceptance 592


Monitoring Audit Progress 598


Appendix


Risks to Internal Audit Activity 603


The IIA’s Three-Lines-of-Defense Model 611


Audit Metrics and Key Performance Indicators 616


Characteristics of Effective Auditors and Audit Function 622


Sarbanes-Oxley Act of 2002 636


About the Author 649


Index 651