CIA Part 1 - Q22

22. You were appointed the chief audit executive (CAE) of an organization one week ago. An engagement client has come to you complaining vigorously that one of your internal auditors is taking up an excessive amount of the client’s time on an engagement that seems to be lacking a clear purpose. In handling this conflict with the client, you should consider

a. Promising the client that you will have the internal auditor finish the work within 1 week.

b. Whether existing procedures within the internal audit activity provide for proper planning and quality assurance.

c. Presenting an immediate defense of the internal auditor based upon currently known facts.

d. Discounting what is said, but documenting the complaint.

22. Solution: b

a. Incorrect. Promising the client to have the internal auditor finish the work within one week without proper background information on the current engagement would jeopardize the authority of the CAE.

b. Correct. In this situation the CAE would have a responsibility to review the existing procedures to determine whether the IAA had provided for proper planning and quality assurance. Not doing so would jeopardize the authority of the CAE.

c. Incorrect. Presenting an immediate defense of the internal auditor could potentially harm future communications with the client. It also could jeopardize the authority of the CAE.

d. Incorrect. The CAE has a responsibility to review the existing procedures to determine whether the IAA had provided for proper planning and quality assurance. But, the CAE also has a responsibility not to discard potentially valid complaints.