A Chief Audit Executive (CAE) Is Selecting an Internal Audit

question 232

Multiple Choice

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

• A) Postpone the audit until the CAE hires internal audit staff with the required knowledge.
• B) Ask the audit committee to decide the course of action.
• C) Select the most experienced auditors in the department to perform the engagement.
• D) Hire consultants who possess the required knowledge to perform the engagement.

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Definitions:

Psychosexual Stage

A concept in Freudian psychoanalysis that refers to the different stages of a child’s development, each characterized by a focus on pleasure from a specific body area.

Adolescents

Young people in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Displacement

In psychology, it's a defense mechanism where an individual shifts negative emotions or impulses from the original source to a less threatening person or object.