CIA Part 1 - Q17

17. During an internal audit, the internal auditor should exercise due professional care. Due professional care means that the internal auditor should consider

I. The extent of work needed to achieve the engagement’s objectives.

II. The relative complexity and materiality to which assurance procedures are applied.

III. The probability of significant errors, irregularities, or noncompliance.

IV. The engagement procedures necessary to ensure that all significant risks have been identified.

a. I and II only.

b. I, II and IV only.

c. I, II, III and IV.

d. I, II and III only.

17. Solution: d

a. Incorrect. Items I and II are correct.

b. Incorrect. Items I and II are correct. However, item IV is not correct. Engagement procedures, even exercised with due professional care, cannot guarantee that all significant risks will be identified.

c. Incorrect. Items I, II and III are correct. Item IV is not correct. Engagement procedures, even exercised with due professional care, cannot guarantee that all significant risks will be identified.

d. Correct. Only items I, II and III are correct. The internal auditor can only provide reasonable assurance that significant risks will be identified, not a guarantee.