* A. Determine whether the purchasing department complies with policy by examining a random selection of purchase orders:Correct. Reviewing a random sample of purchase orders is a standard procedure for evaluating compliance with purchasing policies, such as approval requirements, vendor selection, and adherence to budget constraints.
* B. Evaluate whether purchasing requests are properly approved by authorized staff by obtaining independent verification from the vendors:Vendor verification is not typically used to evaluate internal approvals as this information is available within the organization's records.
* C. Ascertain whether material receipts are recorded on a timely basis by reviewing physical inventory stock counts:Physical inventory reviews focus on inventory management and reconciliation, not specifically on the timeliness of receipts.
* D. Determine whether prices charged for goods received are correct by reviewing the appropriate accounts payable record by vendor:While reviewing accounts payable records helps verify the accuracy of pricing, it does not directly evaluate the purchasing department's adherence to procedures.
CIA Exam Syllabus Reference:
Domain V: Performing Internal Audit Services - Audit Engagement Objectives and Procedures.

When developing the scope of an audit engagement, the internal auditor typically considers factors that directly impact the audit's objectives, risks, and execution. This includes the potential impact of key risks (Option B), the expected outcomes and deliverables (Option C), and the operational and geographic boundaries (Option D). While the need and availability of automated support (Option A) may be a practical consideration for how the audit is conducted, it is not fundamental to defining the scope of the audit engagement itself. The scope is primarily concerned with what is to be audited and why, rather than how the audit will be performed.
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IIA Standard 2200: Engagement Planning.
IIA Practice Guide on Audit Engagement Planning.

The primary objective of an engagement supervisor's review of key activities during the engagement is to ensure that all work performed meets acceptable quality standards. This includes verifying that audit procedures were appropriately executed, audit evidence is properly documented, and audit conclusions are supported. The supervisor's review is crucial for maintaining the integrity and reliability of the audit process, ensuring compliance with internal audit standards and protocols.
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IIA Standard 2340: Engagement Supervision
IIA Practice Guide: Quality Assurance and Improvement Program

Preparing a detailed audit program is a critical component of engagement planning. This program outlines the specific procedures and tests that the internal auditor will perform to evaluate the effectiveness of controls. It ensures that the audit is conducted systematically and thoroughly, addressing all relevant risks and objectives.
A detailed audit program provides a clear roadmap for the audit, helping to ensure that all necessary areas are covered and that the audit's objectives are achieved.
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The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard
2201 - Planning Considerations

Comprehensive and Detailed Explanation:
While professional experience and judgment are important, conclusions in internal audit must be supported by objective, sufficient, and reliable evidence (Standard 2310). Merely believing that bid prices are too high is not enough. The auditor must provide substantiated and comparative evidence (C) - such as market benchmarks, independent price analyses, or comparisons with similar tenders - to justify the conclusion. A description of policies (A) or tender process summaries (B) provide context but do not prove overpricing. An impact analysis (D) highlights consequences but does not establish whether prices were indeed unreasonable. Therefore, the correct requirement is to gather and document comparative evidence that supports the auditor's professional judgment.