An Organization's Chief Audit Executive (CAE) Determines That the Internal

question 323

Multiple Choice

An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

• A) Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.
• B) Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.
• C) Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.
• D) Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

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Definitions:

Revenue

The income gained from sales of goods or services.

Funds

Financial resources set aside for a specific purpose or project.

Angel Investor

A type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family.

Private Businesses

Enterprises owned by individuals or groups without governmental shares and not traded on the public stock markets, characterized by privately held ownership structures.