If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, which of the following would be the most appropriate course of action for the CAE to take to preserve independence?

The audit plan requires a review of the testing procedures used in pre-production of a large information system prior to its live launch.

If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, which of the following would be the most appropriate course of action for the CAE to take to preserve independence?
A . Contract with the software vendor to provide an appropriate resource
B . Ask for a knowledgeable resource from the IT department
C . Make use of an external service provider.
D . Request audit resources through the external auditor.

View Answer

Answer: C

Explanation:

If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, the most appropriate course of action is to use an external service provider. This helps preserve the independence and objectivity of the internal audit function. Expertise: External service providers bring specialized knowledge and expertise that may not be available within the internal team.

Independence: Utilizing an external provider ensures that the audit maintains its independence and objectivity, avoiding any potential conflicts of interest.

Quality: Ensures that the audit engagement is conducted with the highest standards, leveraging the external provider’s experience and skills.

Reference: "Internal Audit and Assurance," which outlines the benefits and considerations of engaging external service providers for specialized audit tasks.