easyMultiple Choice
Audit Planning: Start with Risk Assessment
An IS auditor is planning an audit of a newly implemented ERP system. The auditor wants to ensure that the audit covers critical controls. Which of the following is the most appropriate first step in the audit planning process?
Quick Answer
The answer is to conduct a risk assessment of the ERP implementation. This is the most appropriate first step because audit planning must begin with identifying and evaluating the risks inherent in the new system, such as configuration errors, segregation of duty conflicts, or data migration issues, which then directly informs the scope and focus of audit procedures. On the CISA exam, this concept tests your understanding of the risk-based audit approach, where the auditor prioritizes high-risk areas over low-risk ones to ensure efficient use of limited resources; a common trap is choosing to review the system’s control documentation first, but that step follows risk identification. Remember the memory tip: “Risk first, scope second” — always start audit planning with a risk assessment to target critical controls effectively.
⚠ Common exam trap
The trap here is that candidates often jump to developing the audit program (Option D) or interviewing the system administrator (Option A) because they seem like logical starting points, but the CISA exam emphasizes that risk assessment must precede all other audit planning activities to ensure the audit is risk-based and efficient.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Conduct a risk assessment of the ERP implementation.
C is correct because the IS auditor must first conduct a risk assessment of the ERP implementation to identify and prioritize the critical controls specific to the new system. This step ensures that the audit scope is aligned with the highest risks, such as segregation of duties conflicts, interface integrity, and configuration vulnerabilities, before any detailed planning occurs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Interview the system administrator.
Why it's wrong here
Interviewing the administrator yields narrative context but no documented control baseline, so it cannot establish audit scope against the ERP's critical controls. It is tempting because walkthroughs with system owners are a legitimate evidence-gathering technique once the audit universe and objectives are already defined.
- ✗
Review prior audit workpapers.
Why it's wrong here
Prior workpapers relate to earlier systems or audits, so they cannot establish the newly implemented ERP's control universe or risk profile. Reviewing them is tempting because understanding historical findings and recurring issues is genuinely useful during planning, but only after the current system's scope is defined.
- ✓
Conduct a risk assessment of the ERP implementation.
Why this is correct
A risk assessment identifies which ERP controls are critical and where audit effort should focus, satisfying the stem's requirement to cover critical controls. It precedes scoping, control testing and evidence gathering, ensuring the audit plan is risk-based rather than generic.
- ✗
Develop a detailed audit program.
Why it's wrong here
A detailed audit program presumes the scope, objectives and critical controls are already identified; writing it first inverts the planning sequence. It is tempting because the program is the tangible deliverable of planning, yet it must follow risk assessment and scoping, not precede them.
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Same concept, more angles
1 more way this is tested on CISA
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. An IS auditor is planning an audit of a newly implemented financial system. Which of the following is the PRIMARY consideration when determining the audit scope?
easy- A.Management's request to include all modules
- B.Previous audit findings and recommendations
- ✓ C.Risk assessment of the financial system
- D.Regulatory requirements applicable to the system
Why C: The primary consideration for determining audit scope is a risk assessment of the financial system. ISACA standards require auditors to use a risk-based approach to focus audit efforts on areas with the highest residual risk, ensuring that resources are allocated to the most critical controls and processes. Without a risk assessment, the scope may be too broad or miss key vulnerabilities, such as segregation of duties or access control weaknesses in the new system.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.