Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?

An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services.

Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?
A . The policies and procedures of the internal audit activity.
B . The provisions of the internal audit charter.
C . The authority of the CEO.
D . The IIA’s Code of Ethics.

View Answer

Answer: B

Explanation:

The source of authority for an engagement supervisor to make contact with external parties, such as obtaining maintenance reports from a contractor, typically comes from the provisions outlined in the internal audit charter. This charter formally defines the purpose, authority, and responsibility of the internal audit activity, including interactions with third-party service providers. It is essential as it sets the audit activity’s scope, allowing auditors to access necessary information and resources.

Reference: The Institute of Internal Auditors (IIA) – International Professional Practices Framework (IPPF), specifically the Audit Charter guidelines.