Which of the following statements is true regarding the audit objective for an assurance engagement?

Question

Options

• AOperational management must determine the audit objective in cooperation with the internal
• BThe audit objective may be adjusted after the start of an engagement and it does not need to align
• CThe audit objective must consider the possibility of fraud and noncompliance
• DThe audit objective may or may not consider the possibility of fraud depending on the assessed

• A
  2% (1)
• B
  2% (1)
• C
  92% (54)
• D
  5% (3)

Explanation

According to IIA guidance, the audit objective for an assurance engagement must consider the possibility of fraud and noncompliance. This consideration is essential for ensuring that the audit adequately addresses potential risks that could impact the organization. Assessing the possibility of fraud and noncompliance helps in identifying areas where controls might be deficient and where significant risks might be present, thus enabling the internal audit activity to provide meaningful and relevant recommendations.

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