Certified Internal Auditor (CIA) Practice Test

Data-gathering activities in an audit engagement are typically conducted during which phase?

1. Field work

2. Preliminary survey

3. Engagement program development

4. Examination and evaluation of evidence

The correct answer is: Preliminary survey

The correct choice describes the phase in which auditors gather initial information about the area under review. During a preliminary survey, auditors collect baseline data that helps them understand the operations and risks of the subject matter. This phase typically involves meetings with management, reviewing existing documents, and assessing the internal control environment, which allows auditors to develop an understanding of the processes in place. While the field work phase does involve data-gathering activities, it usually focuses on the collection of evidence related to specific audit procedures once the auditor has established the scope of the engagement through the preliminary survey. The engagement program development phase refers to formulating the audit plan based on the findings from the preliminary survey. Lastly, the examination and evaluation of evidence phase occurs later in the audit process, where the gathered data is analyzed to form conclusions about the effectiveness and efficiency of controls or compliance with regulations. Thus, preliminary survey is the most appropriate phase for initial data-gathering activities.