Certified Internal Auditor (CIA) Practice Test

What should an internal auditor do following the identification of unusual patterns in operational data?

1. Immediately raise fraud concerns

2. Consult internal reporting protocols

3. Document findings for future reference

4. Seek to understand underlying causes through inquiry

The correct answer is: Seek to understand underlying causes through inquiry

Following the identification of unusual patterns in operational data, the most appropriate action for an internal auditor is to seek to understand the underlying causes through inquiry. This approach emphasizes the importance of a thorough analysis before jumping to conclusions. By inquiring further, the auditor can gather context, assess the validity of the data, and identify whether these patterns result from errors, legitimate operational changes, or potentially fraudulent activities. Performing inquiries can also involve discussions with relevant personnel, reviewing supporting documentation, and analyzing associated processes that may clarify the situation. This step is crucial because simply raising fraud concerns or documenting findings prematurely could lead to misunderstandings and escalate matters unnecessarily. Understanding the underlying causes allows the internal auditor to provide more informed recommendations and avoid hasty actions based on assumptions.