Developing a risk-based plan considering each entity’s business processes would best help to ensure that IS audit still covers key risk areas within the IT environment as part of its annual plan. A risk-based plan is a plan that prioritizes the audit activities based on the level of risk associated with each area or process. A risk-based plan can help to allocate the audit resources more efficiently and effectively, and provide more assurance and value to the stakeholders1.
By considering each entity’s business processes, the IS audit can identify and assess the specific risks and controls that affect the IT environment of each entity, and tailor the audit objectives, scope,and procedures accordingly. This can help to address the unique needs and expectations of eachentity, andensure that the IS audit covers the key risk areas that are relevant and significant to each entity’s operations, performance, and compliance2.
The other options are not as effective as developing a risk-based plan considering each entity’s business processes in ensuring that IS audit still covers key risk areas within the IT environment as part of its annual plan. Option A, increasing the frequency of risk-based IS audits for each business entity, is not a feasible or efficient solution, as it may increase the audit costs and workload, and create duplication or overlap of audit efforts. Option C, conducting an audit of newly introduced IT policies and procedures, is a limited and narrow approach, as it may not cover all the aspects or dimensions of the IT environment that may have changed or been affected by the split. Option D, revising IS audit plans to focus on IT changes introduced after the split, is a reactive and short-term approach, as it may not reflect the current or future state of the IT environment or the business objectives of each entity.
References:
ISACA, CISA Review Manual, 27th Edition, 2019
ISACA, CISA Review Questions, Answers & Explanations Database - 12 Month Subscription
Risk-Based Audit Planning: A Guide for Internal Audit1
Risk-Based Audit Approach: Definition & Example
