2019 CIA Exam Syllabus Part 2 – Practice of Internal Auditing

100 questions | 2.0 Hours (120 minutes)

The CIA exam Part 2 includes four domains focused on managing the internal audit activity, planning the engagement, performing the engagement, and communicating engagement results and monitoring progress. Part 2 tests candidates’ knowledge, skills, and abilities particularly related to Performance Standards (series 2000, 2200, 2300, 2400, 2500, and 2600) and current internal audit practices.

Domains

		Cognitive Learning
1. Internal Audit Operations
A	Describe policies and procedures for the planning, organizing, directing, and monitoring of internal audit operations	Basic
B	Interpret administrative activities (budgeting, resourcing, recruiting, staffing, etc.) of the internal audit activity	Basic
2. Establishing a Risk-based Internal Audit Plan
A	Identify sources of potential engagements (audit universe, audit cycle requirements, management requests, regulatory mandates, relevant market and industry trends, emerging issues, etc.)	Basic
B	Identify a risk management framework to assess risks and prioritize audit engagements based on the results of a risk assessment	Basic
C	Interpret the types of assurance engagements (risk and control assessments, audits of third parties and contract compliance, security and privacy, performance and quality audits, key performance indicators, operational audits, financial and regulatory compliance audits)	Proficient
D	Interpret the types of consulting engagements (training, system design, system development, due diligence, privacy, benchmarking, internal control assessment, process mapping, etc.) designed to provide advice and insight	Proficient
E	Describe coordination of internal audit efforts with the external auditor, regulatory oversight bodies, and other internal assurance functions, and potential reliance on other assurance providers	Basic
3. Communicating and Reporting to Senior Management and the Board
A	Recognize that the chief audit executive communicates the annual audit plan to senior management and the board and seeks the board's approval	Basic
B	Identify significant risk exposures and control and governance issues for the chief audit executive to report to the board	Basic
C	Recognize that the chief audit executive reports on the overall effectiveness of the organization's internal control and risk management processes to senior management and the board	Basic
D	Recognize internal audit key performance indicators that the chief audit executive communicates to senior management and the board periodically	Basic

		Cognitive Learning
1. Engagement Planning
A	Determine engagement objectives, evaluation criteria, and the scope of the engagement	Proficient
B	Plan the engagement to assure identification of key risks and controls	Proficient
C	Complete a detailed risk assessment of each audit area, including evaluating and prioritizing risk and control factors	Proficient
D	Determine engagement procedures and prepare the engagement work program	Proficient
E	Determine the level of staff and resources needed for the engagement	Proficient

		Cognitive Learning
1. Information Gathering
A	Gather and examine relevant information (review previous audit reports and data, conduct walk-throughs and interviews, perform observations, etc.) as part of a preliminary survey of the engagement area	Proficient
B	Develop checklists and risk-and-control questionnaires as part of a preliminary survey of the engagement area	Proficient
C	Apply appropriate sampling (nonstatistical, judgmental, discovery, etc.) and statistical analysis techniques	Proficient
2. Analysis and Evaluation
A	Use computerized audit tools and techniques (data mining and extraction, continuous monitoring, automated workpapers, embedded audit modules, etc.)	Proficient
B	Evaluate the relevance, sufficiency, and reliability of potential sources of evidence	Proficient
C	Apply appropriate analytical approaches and process mapping techniques (process identification, workflow analysis, process map generation and analysis, spaghetti maps, RACI diagrams, etc.)	Proficient
D	Determine and apply analytical review techniques (ratio estimation, variance analysis, budget vs. actual, trend analysis, other reasonableness tests, benchmarking, etc.)	Basic
E	Prepare workpapers and documentation of relevant information to support conclusions and engagement results	Proficient
F	Summarize and develop engagement conclusions, including assessment of risks and controls	Proficient
3. Engagement Supervision
A	Identify key activities in supervising engagements (coordinate work assignments, review workpapers, evaluate auditors' performance, etc.)	Basic

		Cognitive Learning
1. Communicating Engagement Results and the Acceptance of Risk
A	Arrange preliminary communication with engagement clients	Proficient
B	Demonstrate communication quality (accurate, objective, clear, concise, constructive, complete, and timely) and elements (objectives, scope, conclusions, recommendations, and action plan)	Proficient
C	Prepare interim reporting on the engagement progress	Proficient
D	Formulate recommendations to enhance and protect organizational value	Proficient
E	Describe the audit engagement communication and reporting process, including holding the exit conference, developing the audit report (draft, review, approve, and distribute), and obtaining management's response	Basic
F	Describe the chief audit executive's responsibility for assessing residual risk	Basic
G	Describe the process for communicating risk acceptance (when management has accepted a level of risk that may be unacceptable to the organization)	Basic
2. Monitoring Progress
A	Assess engagement outcomes, including the management action plan	Proficient
B	Manage monitoring and follow-up of the disposition of audit engagement results communicated to management and the board	Proficient

Additional noteworthy elements related to the revised CIA Part Two exam syllabus:

The syllabus features greater alignment with The IIA’s Performance Standards.
The exam covers the chief audit executive’s responsibility for assessing residual risk and communicating risk acceptance.
The largest domain is “Performing the Engagement,” which makes up 40% of the exam.
A portion of the exam requires candidates to demonstrate a basic comprehension of concepts; another portion requires candidates to demonstrate proficiency in their knowledge, skills, and abilities.

CIA Part 2 Reference List

Most Relevant

The IIA’s International Professional Practices Framework
Applying the International Professional Practices Framework, by Urton Anderson and Andrew J. Dahle
Internal Auditing Assurance and Advisory Services, by Urton Anderson, Michael Head, and Sridhar Ramamoorti
Sawyer's Guide for Internal Auditors, by Larry Sawyer
IIA Position Paper “Staffing Considerations for the Internal Audit Activity”
“Managing Cyber Risk in a Digital Age,” by COSO

Additional Resources

Auditor Essentials: 100 Concepts, Tips, Tools, and Techniques for Success, by Hernan Murdock
New Auditor’s Guide to Internal Auditing, by Bruce Turner
Auditing Social Media: A Governance and Risk Guide, by J. Mike Jacka and Peter Scott
Data Analysis and Sampling Simplified: A Practical Guide for Internal Auditors, by Donald Dickie
Internal Audit of the Future: The Impact of Technology and Innovation, by A. Michael Smith
Ready and Relevant: Prepare to Audit What Matters Most, by Timothy Berichon
Current resources on internal auditing and relevant topics