An engagement team is being assembled to audit of one of the organization's vendors Which of the following statements best applies to this scenario?

Question

Options

• AThe engagement team should include internal auditors who have expertise in investigating vendor
• BThe engagement team should be composed of certified accountants who are proficient In financial
• CTo preserve independence and objectivity, an auditor who worked for the vendor two years prior
• DThe engagement team may include an auditor who lacks knowledge of the industry in which the

• A
  72% (34)
• B
  6% (3)
• C
  4% (2)
• D
  17% (8)

Explanation

According to IIA guidance, when assembling an engagement team to audit a vendor, it is crucial to include internal auditors who have expertise in investigating vendor fraud. This expertise is essential for identifying and assessing fraud risks associated with the vendor and ensuring a thorough and effective audit. While proficiency in financial statement analysis and local accounting principles is valuable, the specific context of vendor fraud requires specialized knowledge in that area.

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