To Develop Greater Internal Auditing Expertise, the Chief Audit Executive

question 391

Multiple Choice

To develop greater internal auditing expertise, the chief audit executive (CAE) has been assigning the same relatively inexperienced team of internal auditors to a series of engagements spanning several months. Is this practice consistent with the Standards?

• A) Yes. The CAE is promoting the professional development of the staff.
• B) Yes. The experience will quickly build specialized skills and competencies.
• C) No. The team should collectively possess the competencies appropriate for the engagements.
• D) No. Teams should be comprised of both experienced and inexperienced auditors.

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Definitions:

Borrow

To borrow means to take something from someone for a limited time, intending to return it, often referring to money in financial contexts.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, hence increasing the total amount of interest earned or paid.

Payments

Amounts of money transferred from one party to another as fulfillment of financial or contractual obligations.

Compounded Annually

Interest on an investment that is calculated once a year on the principle plus any previously earned interest.