Which of the following is an example of a properly supervised engagement?
A.
Auditors are asked to keep a daily record of their activity for review by the auditor in charge following the engagement.
B.
The senior internal auditor requires each auditor to review and initial colleagues’ workpapers for completeness and format
C.
A new internal auditor is accompanied by an experienced auditor during a highly sensitive fraud investigation.
D.
The auditor in charge provides reasonable assurance that engagement objectives were met
The Answer Is:
D
This question includes an explanation.
Explanation:
Supervision in Internal Audit: Effective supervision ensures that the engagement is carried out according to plan, objectives are met, and quality standards are maintained. It involves guiding, mentoring, and reviewing the work of auditors throughout the engagement.
IIA Standards:
Standard 2340 – Engagement Supervision: Internal audit engagements must be properly supervised to ensure objectives are achieved, quality is maintained, and staff are developed.
Proper supervision includes overseeing the engagement, providing direction, and ensuring that work complies with standards and achieves engagement objectives.
Examples of Proper Supervision:
Reasonable Assurance: The auditor in charge providing reasonable assurance that engagement objectives were met is a fundamental aspect of effective supervision. It ensures that the engagement delivers the intended outcomes and adheres to quality standards.
Daily Records and Workpaper Review: Options A and B involve administrative tasks and peer review, which are supportive but do not alone constitute comprehensive supervision.
Accompanied Training: Option C involves on-the-job training, which is beneficial but not the primary aspect of engagement supervision.
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