IIA-CIA-PART1 · Question #176
Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?
The correct answer is B. Internal auditors determine whether the policies, procedures, and practices of the payroll. Option B correctly reflects due professional care because it shows internal auditors directly evaluating whether the payroll department's policies, procedures, and practices are appropriate - which is exactly what a reasonably prudent auditor is expected to do when assessing…
Question
Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?
Options
- AInternal auditors ensure that the work program is appropriately designed in order to identify all of
- BInternal auditors determine whether the policies, procedures, and practices of the payroll
- CInternal auditors verify whether the board of directors has implemented effective internal controls
- DInternal auditors ask the organization's risk manager to determine whether the degree of work
How the community answered
(68 responses)- A9% (6)
- B84% (57)
- C4% (3)
- D3% (2)
Explanation
Option B correctly reflects due professional care because it shows internal auditors directly evaluating whether the payroll department's policies, procedures, and practices are appropriate - which is exactly what a reasonably prudent auditor is expected to do when assessing controls and processes in their assigned area.
Why the distractors are wrong:
- A is flawed because due professional care does not require auditors to identify all risks or deficiencies - an absolute standard that is impossible to meet; it requires reasonable diligence, not perfection.
- C is incorrect because the board of directors oversees internal controls but does not implement them - that responsibility belongs to management. Auditors must understand this distinction.
- D is wrong because due professional care requires internal auditors to exercise their own professional judgment about the scope of work; delegating that determination to the risk manager would abdicate the auditor's professional responsibility.
Memory tip: Think of due professional care as the "reasonable prudent auditor" standard - ask yourself, "Is the auditor doing the evaluating themselves, focused on real controls/practices, without impossible guarantees?" If yes, that's due professional care. Choices A, C, and D each violate one part of that test (impossible standard, wrong responsible party, and delegation of judgment, respectively).
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