Question

According to the standards, which of the following must the internal audit manager think about when considering appropriate due care while planning an assurance engagement?

a. the opportunity to cross train internal audit staff
b. the cost of assurance in relationship to potential benefits.
c. job openings in the area that may be of interest to internal auditors assigned to the engagement
d. the potential to delivery consulting services to the auditee

Answer 1

The internal audit manager must consider the cost of assurance, the potential for delivering consulting services, and whether cross-training or job openings are relevant during the planning stage. So the correct answer is option A).

Step-by-step explanation:

The internal audit manager must consider the cost of assurance in relation to potential benefits when planning an assurance engagement. This means weighing the expenses associated with conducting the audit against the expected benefits or value that the audit will provide. It is essential to ensure that the cost of the audit does not outweigh the benefits it will bring to the organization.

Furthermore, the potential to deliver consulting services to the auditee should also be taken into account. During an assurance engagement, the internal audit manager may identify areas where they can offer consulting services to improve the auditee's processes or operations.

Cross-training internal audit staff and considering job openings in the area that may be of interest to internal auditors assigned to the engagement are not directly related to appropriate due care during the planning stage of an assurance engagement.