Certified Internal Auditor Practice Test 2026 – Complete Exam Prep

When handling a significant budget variance, the best approach involves formulating a plan for appropriate information accumulation. This option emphasizes the importance of gathering relevant data and insights which will help to understand the reasons behind the budget variance. By systematically collecting and analyzing information, the internal auditor can identify the root causes of the variance, assess its implications, and provide informed recommendations for corrective actions.

This approach is aligned with standard auditing practices that prioritize thoroughness and evidence-based analysis. Rather than jumping to conclusions or halting the engagement, which could waste resources and time, the auditor strategically focuses on data collection. This ensures that the investigation is comprehensive and leads to a clearer understanding of the financial situation.

Collaborating with senior staff to gain insights and utilizing resources effectively supports the overall internal audit function and encourages communication and transparency. Thus, aiding in the formulation of a plan for information accumulation not only enables effective problem-solving but also contributes positively to organizational governance and resource management.