The chief audit executive (CAE) is developing a workpaper preparation policy for a new internal audit activity. The CAE wants to ensure that all workpapers relate directly to the engagement…

The correct answer is B. The workpapers should be relevant. When developing a workpaper preparation policy, it is essential to ensure that all workpapers are directly related to the engagement objectives. The term "relevant" in this context means that the workpapers must be pertinent and appropriate to the audit engagement's objectives…

Conducting the Internal Audit Engagement

Question

The chief audit executive (CAE) is developing a workpaper preparation policy for a new internal audit activity. The CAE wants to ensure that all workpapers relate directly to the engagement objectives. Which of the following statements should be included in the policy specifically to address this concern?

Options

AThe workpapers should be understandable.
BThe workpapers should be relevant.
CThe workpapers should be economical.
DThe workpapers should be complete.

How the community answered

(39 responses)

A
3% (1)
B
92% (36)
D
5% (2)

Explanation

When developing a workpaper preparation policy, it is essential to ensure that all workpapers are directly related to the engagement objectives. The term "relevant" in this context means that the workpapers must be pertinent and appropriate to the audit engagement's objectives, ensuring that they support the findings, conclusions, and recommendations.

Topics

#workpaper standards#relevance#audit documentation#engagement objectives

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