Question

In conducting an assurance engagement, the Standards require that the internal auditor exercise due professional care. Which of the following is not 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?

Select one:
a. The audit committee has requested assurance on the treasury function's compliance with a new policy on use of financial instruments.
b. Treasury management has not instituted any risk-management policies.
c. The independent outside auditors have requested to see the report and workpapers from the engagement.
d. The treasury function just completed implementation of a new real-time investment tracking system.

Answer 1

The independent outside auditor's request to see the report and workpapers from the engagement is not required to be considered in determining what is needed for the exercising of due care in an assurance engagement of treasury operations.

Step-by-step explanation:

In conducting an assurance engagement, the internal auditor is required to exercise due professional care. However, the question asks for something that is not required to be considered in determining what is needed for the exercising of due care in an assurance engagement of treasury operations. Therefore, the answer would be option C. The independent outside auditors requesting to see the report and workpapers from the engagement is not directly related to the internal auditor's determination of due care for the treasury operations assurance engagement.