Question

The IIA's Standards require internal auditors to exercise due professional care while conducting assurance engagements. Which of the following is not something an internal auditor is required to consider in determinig what constitutes the exercise of due care in an assurance engagement of treasury operations?

a. the audit committee has requested assurance on the treasury function's compliance with a new poicy on use of financial instrumetns.
b. treasury management has not instituted any risk management policies.
c. the independent outside auditors have requested to see the engagement report and working papers.
d. the treasury function just completed implementation of a new real-time investment tracking system.

Answer 1

In the context of IIA's Standards for internal auditors, the factor unrelated to exercising due care in an assurance engagement of treasury operations is the request from independent outside auditors to see reports and working papers. Factors directly affecting the engagement, such as risk management policies and system implementations, should be considered.

Step-by-step explanation:

The IIA's Standards stipulate that internal auditors must exercise due care while conducting assurance engagements. Among the options provided, the one that is not a requirement for an internal auditor to consider when determining due care in an assurance engagement of treasury operations is c. the independent outside auditors have requested to see the engagement report and working papers.

While auditors must comply with relevant laws and standards related to confidentiality and the sharing of information, the request from independent outside auditors does not directly impact the due care in the assurance engagement.

On the other hand, the audit committee's request for assurance on compliance, lack of risk management policies by treasury management, and the implementation of a new system are all factors that directly relate to the engagement and should be considered to ensure due professional care is exercised.

Therefore, the correct answer is c. the independent outside auditors have requested to see the engagement report and working papers.