The scenario where the chief audit executive (CAE) declines a request to review and provide feedback on strategic plans for a merger due to the team ' s lack of experience with mergers demonstrates internal audit proficiency. Proficiency in internal auditing involves understanding and applying knowledge, skills, and competencies to perform tasks according to professional standards. Recognizing the limitations of the audit team ' s expertise and declining engagements that exceed their proficiency safeguards the quality and reliability of the audit function.
IIA Standard 1210 - Proficiency, which mandates that internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities.QUESTION NO: 256
According to IIA guidance, which of the following should be formally documented in the internal audit charter?
A. The internal audit activity ' s responsibility for imposing risk management processes.
B. The internal audit activity ' s responsibility for the FInance framework.
C. The nature of consulting services provided by the internal audit activity.
D. The budgeting process for the internal audit activity.
Answer: C
According to IIA guidance, the internal audit charter should formally document the nature of consulting services provided by the internal audit activity. This ensures that the scope and extent of consulting services are clearly defined and understood, helping to manage expectations and clarify the role of the internal audit function in such activities.References: IIA ' s International Professional Practices Framework (IPPF) - specifically, the attribute standards relating to the internal audit charter which should outline the nature of consulting services among other fundamental roles and responsibilities.
