Question

Reported internal audit observations emerge as a result of comparing "what

should be" with "what is." In determining "what should be" during an internal
audit engagement, which of the following would be the least appropriate
criterion against which to assess current controls?
a. Industry best practices.
b. Control policies and procedures prescribed by senior management.
c. A standard of control effectiveness determined by the internal audit function.
d. The controls documented as being in place during the last audit.

Answer 1

The least appropriate criterion against which to assess current controls in an internal audit engagement is industry best practices.

Step-by-step explanation:

The least appropriate criterion against which to assess current controls in determining 'what should be' during an internal audit engagement is a. Industry best practices. While industry best practices may provide valuable insights, they may not be directly applicable to a specific organization's unique circumstances and needs. Control policies and procedures prescribed by senior management, a standard of control effectiveness determined by the internal audit function, and the controls documented as being in place during the last audit are more tailored and relevant criteria.