IIA-CIA-PART2 · Question #291
An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the business unit lacks a system of internal controls. Which of the following is…
The correct answer is C. Add a consulting component to the already scheduled assurance engagement. When an internal audit team leader encounters difficulties due to the lack of a system of internal controls, the most appropriate course of action is to add a consulting component to the scheduled assurance engagement. This approach allows the internal audit team to provide…
Question
An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the business unit lacks a system of internal controls. Which of the following is the most appropriate course of action for the internal audit team leader?
Options
- ADefer the engagement until a system of internal control has been established
- BChange the scheduled engagement from assurance to consulting to help correct the shortcomings
- CAdd a consulting component to the already scheduled assurance engagement
- DSeek the involvement of the external auditor to assist with improving the internal controls
How the community answered
(42 responses)- A7% (3)
- B2% (1)
- C79% (33)
- D12% (5)
Explanation
When an internal audit team leader encounters difficulties due to the lack of a system of internal controls, the most appropriate course of action is to add a consulting component to the scheduled assurance engagement. This approach allows the internal audit team to provide advice and recommendations on establishing internal controls while still fulfilling their assurance responsibilities. By integrating consulting activities, the auditors can help the business unit improve its control environment, which can then be assessed in the assurance engagement.
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