When an Internal Auditor Applies Due Professional Care to Perform

question 47

Multiple Choice

When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider? 1. Findings of the last audit engagement performed. 2. Probability of significant errors, irregularities, or noncompliance. 3. Extent of work needed to achieve engagement objectives. 4. Cost of the engagement versus the potential benefits.

• A) 1 and 4 only
• B) 2 and 3 only
• C) 2, 3, and 4 only
• D) 1, 2, 3, and 4

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Definitions:

Ethical Standards

The principles and values that guide the behavior of individuals and organizations, ensuring conduct that is honest, fair, and respectful to all stakeholders.

Directional Code

A sequence of numbers or letters used to guide or provide directions, commonly seen in postal addresses, maps, or as part of navigational aids.

Competitive Information

Data or insights related to competitors' strategies, products, and market performance, used for strategic planning.

Ethical Behavior

Conduct based on recognized right or wrong practices, primarily in a professional setting, reflecting personal and corporate values.