IIA-CIA-PART2 · Question #112
The chief audit executive (CAE) for a manufacturing company included in this year s audit plan a review of the company's laboratory, using an experienced external service provider. The audit plan…
The correct answer is C. CAE. The chief audit executive (CAE) is responsible for ensuring that the conclusions reached by the external service provider are adequately supported. While the audit committee approves the audit plan and the CEO may approve the engagement of external service providers, it is the…
Question
The chief audit executive (CAE) for a manufacturing company included in this year s audit plan a review of the company's laboratory, using an experienced external service provider. The audit plan was approved by the audit committee without any changes At the time of engaging the external service provider, the CAE also secured the approval from the CEO. Who is responsible for ensuring that the conclusions reached for this exercise are adequately supported7
Options
- AAudit committee
- BCEO
- CCAE.
- DExternal service provider
How the community answered
(26 responses)- A4% (1)
- B8% (2)
- C85% (22)
- D4% (1)
Explanation
The chief audit executive (CAE) is responsible for ensuring that the conclusions reached by the external service provider are adequately supported. While the audit committee approves the audit plan and the CEO may approve the engagement of external service providers, it is the CAE's responsibility to oversee the entire audit process, including the quality and substantiation of the conclusions and recommendations made by the external auditors.
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