What is expected of internal auditors in regards to due professional care?

Question

Options

• AAuditors perform assurance services without regard to cost
• BAuditors perform assurance services effectively to identify all risks
• CAuditors perform assurance services needed to achieve the engagement's objectives
• DAuditors perform assurance services to guarantee all significant risks will be addressed

• A
  3% (1)
• B
  13% (4)
• C
  78% (25)
• D
  6% (2)

Explanation

Due professional care requires internal auditors to apply the level of skill and diligence reasonably expected of a competent auditor - meaning they must perform assurance services sufficient to achieve the engagement's objectives, no more, no less. Option C is correct because it captures this balanced standard: auditors are expected to do what's necessary and appropriate, not everything conceivable.

• A is wrong because cost is absolutely a consideration - due professional care includes being efficient and not wasteful of resources.
• B is wrong because no auditor can realistically identify all risks; the standard is reasonable skill and care, not perfection or omniscience.
• D is wrong for the same reason - internal auditing provides reasonable assurance, not a guarantee. Guaranteeing outcomes would be an impossible and inappropriate standard.

Memory tip: Think of due professional care as the "Goldilocks" standard - not too little (A), not an impossible promise (B or D), but just enough to meet the engagement's objectives (C). The word "guarantee" in any audit answer is almost always a trap.

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