A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the…

Question

Options

• AAssign the engagement to a more senior internal auditor.
• BDecline the engagement request.
• CAllow the internal auditors to acquire the needed skills while performing the engagement.
• DSupervise the assigned internal auditors throughout the engagement.

• A
  10% (3)
• B
  80% (24)
• C
  7% (2)
• D
  3% (1)

Explanation

According to IIA Standard 1210.C1, when the internal audit activity lacks the competencies needed for a consulting engagement, the CAE must either decline the engagement or obtain competent external advice and assistance - since no external option is offered among the choices, declining (B) is the correct response to protect the quality and integrity of the engagement. Option A is wrong because seniority does not substitute for a specific missing technical skill; a more senior auditor with the same skill gap adds no value. Option C is dangerous because performing an engagement is not an appropriate vehicle for on-the-job skill acquisition - clients depend on competence being present at the outset, not developed during the work. Option D fails for the same reason: supervision cannot compensate for a fundamental competency gap that affects all available auditors.

Memory tip: Think of it as a doctor analogy - a surgeon who lacks a required surgical skill cannot simply perform the operation to learn it, nor can a senior doctor supervising them fix the problem. The ethical response is to refer the patient (decline and redirect), not to improvise on the job.

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