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Question 308 - IIA-CIA-Part2 discussion

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The audit committee has asked the chief audit executive (CAE) to conduct an ad hoc forensic investigation of the purchasing department within a month due to the significance and urgency of a recently discovered risk The internal audit activity currently has no available staff with relevant experience or qualifications Which of the following is the CAE's best option for fulfilling the internal audit activity's responsibilities in this case?

A.
Outsource the investigation to independent professional consultants
Answers
A.
Outsource the investigation to independent professional consultants
B.
Select certain internal auditors and remove them from their current assignments so that they can begin a forensic investigation course
Answers
B.
Select certain internal auditors and remove them from their current assignments so that they can begin a forensic investigation course
C.
Recruit additional internal auditors possessing relevant qualification and experience
Answers
C.
Recruit additional internal auditors possessing relevant qualification and experience
D.
Decline the engagement at this time
Answers
D.
Decline the engagement at this time
Suggested answer: A

Explanation:

Given the urgency and the lack of internal expertise in forensic investigation, the most effective and immediate solution is to outsource the investigation to independent professional consultants. This approach ensures that the investigation is conducted by individuals with the necessary skills and experience, thereby maintaining the integrity and quality of the investigation. Training internal staff or recruiting new auditors would take time and may not address the immediate need, while declining the engagement would not fulfill the audit committee's request.

Reference:

'Internal Auditing: Assurance & Advisory Services' (The Institute of Internal Auditors)

'Forensic Accounting and Fraud Investigation for Non-Experts' (Howard Silverstone and Michael Sheetz)

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asked 18/09/2024
Fernando Pereira dos Santos
39 questions
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