IIA-CIA-PART2 · Question #436
Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors' work?
The correct answer is C. Examine objectivity and any perceived or actual conflicts of interest. When the chief audit executive (CAE) evaluates the possibility of relying on external auditors' work, the primary focus should be on examining the objectivity and any perceived or actual conflicts of interest that might affect the external auditors' work. Ensuring that the…
Question
Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors' work?
Options
- APerform comprehensive background checks on all independent auditors on the engagement.
- BRecalculate all financial calculations to confirm competency.
- CExamine objectivity and any perceived or actual conflicts of interest.
- DReview audit tests employed in all previous audits.
How the community answered
(32 responses)- A9% (3)
- B3% (1)
- C84% (27)
- D3% (1)
Explanation
When the chief audit executive (CAE) evaluates the possibility of relying on external auditors' work, the primary focus should be on examining the objectivity and any perceived or actual conflicts of interest that might affect the external auditors' work. Ensuring that the external auditors are objective and free from conflicts is crucial for determining whether their work can be relied upon by the internal audit activity.
Topics
Community Discussion
No community discussion yet for this question.