QUESTION: 25

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

Postpone the audit until the CAE hires internal audit staff with the required knowledge.
Ask the audit committee to decide the course of action.
Select the most experienced auditors in the department to perform the engagement.
Hire consultants who possess the required knowledge to perform the engagement.

Answer(s): D

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QUESTION: 26

According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

Management principles.
Computerized information systems.
Internal audit standards, procedures, and techniques.
Fundamentals of accounting, economics, and finance.

Answer(s): C

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QUESTION: 27

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?
1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement's objectives.