EXPLANATION:

The organizational objectives should

considered first because this will
dictate on who and what expertise is
needed in auditing.

EXPLANATION:

It is appropriate because the IAA is

hiring a person who has
nonspecialized know ledge of
economics and IT.

EXPLANATION:

It is on the standards about

proficiency that the Internal auditor
should be proficient on internal
auditing standards.
 EXPLANATION:

It is a violation of the standard

because they will accept the
engagement without sufficient skills
and expertise.

EXPLANATION:

It is stated on the problem provided

that the requirements I and II were
examine well.

EXPLANATION:

It is stated on the problem provided

that the requirements I and II were
examine well.
EXPLANATION:

Expressing opinions on engagement

should be based on factual evidence.

EXPLANATION:

It is the provided option if ever the

IAA lacks the expertise to perform
specific engagement
EXPLANATION:

It violates the standards because

there is a nondiscovery of fraud and
they presumed that the internal
controls in the area were adequate
and effective when a fraud does exist.

EXPLANATION:

All of the statements were included in

CPE.
EXPLANATION:

It is stated on the discussion that

understanding is about understanding
the management principles.

EXPLANATION:

The answer should be Management

policies. Because the Internal auditing
procedures and techniques is about
proficiency, so I am wrong .

EXPLANATION:

The other three were present in

competency of Internal auditing so
the last answer for me is correct.
 EXPLANATION:

I am wrong here the answer should’ve

been “The Cia has a formal
requiremnts with regards to CPE

EXPLANATION:

Here I apply lean principle. I would get

Internal auditors needed and
sufficient for the engagement.

EXPLANATION:

Due professional care include I and III

but not the II because due
professional care does not require to
test all of the transactions.
EXPLANATION:

The three other answers is incorrect

because there is no absolute
assurance, the other statement is
irrelevant for it is about hiring or
proficiency, and the last was about
communication or objecvtivity.

EXPLANATION:

Providing staff with sufficient training

to enhance communication skills will
solve Communication problems and
the other choices were irrelevant in
solving the said problem.
EXPLANATION:

It is stated on the standards that due

professional care does not entail
infallibility truth about the subject.
EXPLANATION:

The III is not present on the EXPLANATION:

competency framework it is not
All answers were correct since it is
included.
suitable on the outsourced expertise.

EXPLANATION:

Engaging an engineering consultant o

perform the comparison is the right
action because his/her expertise is
appropriate on the skills needed on
the enegagement.
EXPLANATION:

Due professional care include

Considering whether the established
operating standards were adequate.

EXPLANATION:

It is the appropriate action of the CAE

if IAA don’t has the appropriate
experts for the engagement.
EXPLANATION:

It is the right answer because that’s

what the proficiency entails

EXPLANATION:

Since they focused on a certain skill it

will limit their range of service.
 EXPLANATION:

It is on the video discussion that

proficiency is related to the discipline
of Internal auditing procedures and
techniques.

EXPLANATION:

Since due care implies reasonable

care and competence and not
infallibility or extraordinary
performance conducting extensive
examinations are unnecessary. And in
addition due care does not imply
perfection.