An organization has a mature control environment but limited internal audit resources Given this scenario, on which of the following should the internal auditors focus their testing?
In a mature control environment with limited internal audit resources, internal auditors should focus their testing on preventive key controls. Preventive controls are designed to stop errors or irregularities before they occur, making them crucial for maintaining control effectiveness. Key controls are the most important controls in mitigating risks to an acceptable level. By focusing on these, internal auditors can ensure that the most critical risks are managed effectively despite limited resources. References:
The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2320 - Analysis and Evaluation.
The IIA’s Practice Guide on Assessing the Adequacy of Control Processes.
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