When identifying specific processes to include in the scope of an assurance engagement, the most useful information for an internal auditor is recent area performance indicators against productivity metrics. This data helps the auditor identify areas with potential risks or inefficiencies that might warrant further examination.
Detailed Explanation:
IIA Standard 2200 - Engagement Planning:
This standard requires auditors to develop a plan for each engagement, including objectives and scope, based on a thorough understanding of the area under review. Performance indicators provide valuable insights into areas that may not be meeting productivity or efficiency targets.
Use of Performance Indicators:
Performance indicators allow the auditor to identify processes that may be underperforming or where there may be significant variances from expected outcomes. This helps in focusing the audit on areas with the greatest potential for improvement or risk.
IIA Practice Advisory 2201-2:
The advisory suggests that auditors should consider using performance data, such as productivity metrics, to determine where to focus their audit efforts. This data-driven approach ensures that the audit is relevant and adds value.
Why Not Other Options?
Option A (Recognition awards): Awards do not provide insight into risks or underperformance that might require audit attention.
Option B (Timing of the last audit): While useful, the timing alone does not indicate current risks or issues.
Option C (Management's presentation): This may provide some insights, but it is often more narrative and less data-driven than performance indicators.
Conclusion: Option D is correct because recent performance indicators against productivity metrics provide the most relevant information for identifying processes to include in the scope of an assurance engagement, ensuring that the audit is focused on areas of significant risk or opportunity for improvement, in line with IIA standards.