Question

. A chief audit executive for a large manufacturer

is considering revising the internal audit activity's
charter with respect to the minimum educational and
experience qualifications required. The CAE wants to
require all staff auditors to possess specialized
training in accounting and a professional auditing
certification such as the Certified Internal Auditor or
the Chartered Accountant (CA). One of the
disadvantages of imposing this requirement would be
A. The policy might negatively affect the internal
audit activity's ability to perform quality
engagements relating to the organization's
financial and accounting systems.
B. The policy would not promote the
professionalism of the internal audit activity.
C. The policy would prevent the internal audit
activity from using outside service providers
when it did not have the knowledge, skills, and
other competencies required in certain
engagements.
D. The policy could limit the range of services that
could be performed due to the internal audit
activity's narrow expertise and backgrounds.

Answer 1

Imposing a requirement for auditors to possess specialized accounting training and a professional certification could limit the range of services the internal audit can perform, due to a potentially narrow focus in expertise.

Step-by-step explanation:

The question at hand revolves around a Chief Audit Executive (CAE) who is contemplating a change to the qualifications necessary for staff auditors in a manufacturing firm. Requiring all staff auditors to have specialized training in accounting and professional auditing certifications like Certified Internal Auditor or Chartered Accountant (CA) could limit the diversity of expertise within the internal audit team.

One possible disadvantage of imposing such a requirement is Option D: The policy could limit the range of services that could be performed due to the internal audit activity's narrow expertise and backgrounds. By focusing solely on accounting and auditing credentials, the audit team might lack skills in other areas critical to comprehensive internal audit functions, such as information technology audits, operational audits, or strategic risk assessment.

Employers seeking to increase workforce equity and widen their applicant pool have been encouraged to consider removing unnecessary degree barriers, to provide access for individuals who have the skills and knowledge required for the job, even without specific degrees (Kerr 2020).