IIA-CIA-PART2 · Question #457
The external auditor has identified a number of production process control deficiencies involving several departments. As a result, senior management has asked the internal audit activity to…
The correct answer is C. Accept the engagement but hire an external training specialist to provide the necessary expertise. According to the IIA's guidance, internal audit can accept consulting engagements, including providing training, as long as it does not impair their independence and objectivity. In this scenario, the most appropriate action for the chief audit executive (CAE) is to accept the…
Question
The external auditor has identified a number of production process control deficiencies involving several departments. As a result, senior management has asked the internal audit activity to complete internal control training for all related staff. According to IIA guidance, which of the following would be the most appropriate course of action for the chief audit executive to follow?
Options
- ARefuse to accept the consulting engagement because it would be a violation of independence.
- BCollaborate with the external auditor to ensure the most efficient use of resources.
- CAccept the engagement but hire an external training specialist to provide the necessary expertise.
- DAccept the engagement even if the audit engagement staff was previously responsible for
How the community answered
(14 responses)- A7% (1)
- B7% (1)
- C71% (10)
- D14% (2)
Explanation
According to the IIA's guidance, internal audit can accept consulting engagements, including providing training, as long as it does not impair their independence and objectivity. In this scenario, the most appropriate action for the chief audit executive (CAE) is to accept the engagement and hire an external specialist to deliver the training. This ensures that the internal audit activity does not compromise its independence by training on areas where they might later need to provide objective assurance. By using an external expert, the CAE ensures the training is conducted by someone with the requisite expertise and without any conflict of interest.
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