During engagement planning, an internal auditor determines that the cost of a certain test outweighs the benefit that can be expected from the results. He determines that this test can be removed…

Question

Options

• ADue professional care
• BIndividual objectivity
• CProficiency
• DInternal assessment

• A
  76% (16)
• B
  14% (3)
• C
  5% (1)
• D
  5% (1)

Explanation

Due professional care (A) is correct because it requires auditors to consider the cost-effectiveness of audit procedures - when the cost of a test exceeds its expected benefit, a prudent auditor should recognize this and adjust the work program accordingly. This is explicitly part of the IIA Standard on due professional care, which includes weighing costs against benefits when designing audit engagements.

Individual objectivity (B) is wrong because objectivity relates to having an unbiased mental attitude and avoiding conflicts of interest - it has nothing to do with evaluating test costs vs. benefits.

Proficiency (C) is wrong because proficiency refers to having the knowledge, skills, and competencies needed to perform audit work - it describes capability, not the exercise of judgment about cost-effectiveness.

Internal assessment (D) is wrong because this refers to quality assurance activities that evaluate the internal audit function itself, not a judgment call made during individual engagement planning.

Memory tip: Think of "due professional care" as the prudent auditor standard - a reasonable, experienced auditor always asks "is this worth doing?" If not, removing it IS the careful, professional thing to do. When you see cost-benefit reasoning in audit questions, that's almost always due professional care.

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