Question

An upcoming internal audit engagement involves the possibility of fraud. The Standards require the internal auditors to possess which of the following skills?

A. To be able to identify indicators that fraud may have been committed.
B. To possess technical expertise in a particular area of fraud examination, such as computer hacking.
C. To hold a current Certified Fraud Examiner certification.
D. To hold a current Certified Internal Auditor certification.

Answer 1

Internal auditors must have the skill to identify indicators of potential fraud, which includes an understanding of social systems and the ability to analyze statistical data, not necessarily holding specific certifications. Among the options provided, the correct answer is A.

Step-by-step explanation:

The internal audit engagement involving the possibility of fraud according to The Standards requires internal auditors to possess certain skills. Among the options provided, the correct answer is A. To be able to identify indicators that fraud may have been committed.

This is because internal auditors must be equipped with an understanding of social systems, the capability to analyze statistical information, and the proficiency to recognize variances in organizational environments. While certifications like Certified Fraud Examiner (CFE) and Certified Internal Auditor (CIA) are valuable, they are not specifically mandated by The Standards for every audit engagement.