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3 votes
. An internal audit activity has scheduled an

engagement relating to a construction contract. One
portion of this engagement will include comparing
materials purchased with those specified in the
engineering drawings. The IAA does not have
anyone on staff with sufficient expertise to complete
this procedure. The chief audit executive should
A. Delete the engagement from the schedule.
B. Perform the entire engagement using current
staff.
C. Engage an engineering consultant to perform
the comparison.
D. Accept the contractor's written
representations.

1 Answer

6 votes

Final answer:

The question seems to pertain to an internal audit activity being scheduled, which likely involves addressing planning, execution, and follow-up tasks by auditors. In the face of conflicts or issues, auditors may reassess and potentially reschedule the audit, seek alternative information, or accept written representations, depending on the situation.

Step-by-step explanation:

The student's question relates to the scenario where an internal audit activity is scheduled, but a part of the question appears to be missing or unclear. In general, internal audits are critical for assessing the effectiveness of a company's internal controls, corporate governance, and accounting processes. Internal audits help organizations to identify weaknesses in their operational processes and recommend improvements.

When auditors schedule an audit engagement, it typically involves planning, execution, and follow-up. Scheduling is a vital part of the audit process as it ensures that the necessary resources are allocated and that the audit is conducted in a timely manner. If an issue arises, such as a conflict with a contractor's schedule, auditors may need to reassess their audit plan. Depending on the specifics of the situation, auditors may either reschedule the engagement, seek to obtain necessary information through alternate means, or accept written representations from the contractor as a part of their audit evidence.

It is important that the audit engagement is completed to maintain the integrity of the audit process and provide assurance to stakeholders. If further clarification is provided on the situation, a more specific course of action could be advised.

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