ACCA Advanced Audit and Assurance (AAA) Practice Exam

What is a significant advantage of thoroughly drafted ICQs and ICEQs?

1. They provide vague criteria for control effectiveness.

2. They ensure all controls are considered during the audit.

3. They are always comprehensive and lengthy.

4. They require a long time to prepare.

The correct answer is: They ensure all controls are considered during the audit.

The significant advantage of thoroughly drafted Internal Control Questionnaires (ICQs) and Internal Control Evaluation Questionnaires (ICEQs) lies in their ability to ensure that all controls are considered during the audit process. These questionnaires are designed to systematically capture information regarding the internal controls implemented by an organization. By effectively laying out specific questions about control activities, processes, and their effectiveness, ICQs and ICEQs promote a thorough review of the entire control environment. This comprehensive approach minimizes the risk of overlooking important controls and enables auditors to assess not only the design but also the operational effectiveness of these controls. Moreover, having a structured framework helps audit teams ensure that their evaluation is consistent and aligns with auditing standards. While the other choices mention aspects like vague criteria, comprehensiveness, and preparation time, they do not highlight the core benefit of improved coverage and thoroughness that these questionnaires offer. The clarity and structure they provide are instrumental in guiding the auditor through a process that enhances risk assessment and overall audit quality.