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Exam IIA-CIA-Part2 topic 4 question 49 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 49
Topic #: 4
[All IIA-CIA-Part2 Questions]

Due to the expanded role of internal audit in the organization, the chief audit executive (CAE) of a construction company decides to employ the services of an outsourced audit service provider to augment the internal audit staff. What does the CAE need to consider in determining whether the outsourced audit service provider possesses the necessary knowledge, skills and other competencies to perform an audit engagement?

  • A. Specific matters expected to be covered in the engagement communications.
  • B. The financial interest that the external service provider may have in the organization.
  • C. The extent of other ongoing services the external service provider may be performing for the organization.
  • D. The reputation of the external service provider.
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Suggested Answer: D 🗳️

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Elvoo
2 months, 1 week ago
Why not C?
upvoted 1 times
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whatup
4 years, 6 months ago
answer A seems right. CAE needs to determine specific matters to be audited to see if outsourced activity has the capabilities to audit those areas
upvoted 1 times
kudha
4 years, 5 months ago
Read Option A carefully. It says specific matters in 'engagement communication' which can be taken up by CAE him/herself. Hence, Option D.
upvoted 7 times
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