Question

Which of the following is /are something an internal auditor is required to consider in determining what is needed for the exercising of due care in an assurance engagement of treasury operations?

Choose one answer.
• The audit committee has requested assurance on the treasury function's compliance with a new policy on use of financial instruments.
• Treasury management has not instituted any risk-management policies.
• The treasury function just completed implementation of a new real-time investment tracking system.
• All of the above

Answer 1

An internal auditor is required to consider the audit committee's request for assurance, the lack of risk-management policies, and the implementation of a new tracking system in determining what is needed for the exercising of due care in an assurance engagement of treasury operations.

Step-by-step explanation:

When determining what is needed for the exercising of due care in an assurance engagement of treasury operations, an internal auditor is required to consider various factors. In this case, the audit committee's request for assurance on the treasury function's compliance with a new policy on use of financial instruments is an important consideration. Additionally, the fact that treasury management has not instituted any risk-management policies is another factor that the internal auditor should take into account. Finally, the completion of the implementation of a new real-time investment tracking system by the treasury function is also relevant.