Which of the following best demonstrates the application of due professional care?
A.
An engagement supervisor requests that the employment of a process owner be terminated due to a significant control failure.
B.
An audit lead establishes internal audit manuals to guide the internal audit activity on now to undertake audit engagements.
C.
An audit manager provides a guarantee to senior management that internal controls relating to an audited process operate effectively.
D.
An organization's internal audit activity operates under a direct reporting structure to tie audit committee of the board
The Answer Is:
B
This question includes an explanation.
Explanation:
Demonstrating due professional care involves ensuring that the internal audit activity follows established guidelines and standards for conducting audit engagements. By establishing internal audit manuals, an audit lead provides a structured approach and standardized procedures for the internal audit activity, which helps in maintaining consistency, quality, and adherence to professional standards. This practice exemplifies the application of due professional care by promoting thorough and well-documented audit processes.
The IIA Standards: Standard 1220 – Due Professional Care: "Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility."
IIA Practice Guide: "Quality Assurance and Improvement Program": Highlights the importance of internal audit manuals and procedures in maintaining due professional care.
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