According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing…

Question breakdown

Tests

Distinguish macro-level and micro-level planning activities

Difficulty

Medium

Key idea: Macro-level planning activities gather broad, overall information about the area under review, while micro-level activities examine specific detailed items.

How to reach the answer

1. Classify each activity as broad and overall or narrow and specific.
2. Reviewing all purchasing-related audit reports from the past year gives a broad view, so it is macro.
3. Meeting the QA group about its purchasing findings in general is also a broad survey, so it is macro.
4. A single memo on one software issue, or one specific prior engagement report, is a targeted, detailed source, so these are micro.

Each option

• ACorrect. Reviewing all recent purchasing reports and consulting the QA group on its findings both provide a broad, high-level understanding.
• BIncorrect. The manager's memo on one software problem is a specific, micro-level item.
• CIncorrect. Requesting one particular external provider's report is a targeted, detailed step.
• DIncorrect. Both the specific memo and the single external report are micro-level activities.

Common trap: Item 4 looks like item 1 because both involve prior audit reports, but requesting one specific report is narrower than reviewing all related reports.

In practice: In engagement planning, auditors start with broad sources such as prior reports and assurance-provider findings, then narrow to specific documents and issues.

Remember: Macro equals broad, overall information gathering; micro equals specific, item-level detail.

Reviewed by Alexandra Stone.