Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 218

Management has requested that the internal audit activity perform a consulting engagement to review fraud prevention programs. Which of the following is a Standards requirement to accept and perform the consulting engagement?

Answer options

• A. The internal audit activity must be free from interference in determining the scope of the consulting engagement.
• B. Internal auditors assigned to the consulting engagement must have no previous responsibility for fraud prevention programs.
• C. The internal audit activity must not provide future assurance services related to fraud prevention programs until at least one year has lapsed.
• D. Internal auditors must incorporate knowledge gained from the consulting engagement into me evaluation or risks and controls in future assurance engagements.

Correct answer: D

Explanation

The correct answer, D, emphasizes the importance of integrating knowledge from consulting engagements into future risk assessments and control evaluations. Option A is incorrect because it pertains to scope determination, not a specific Standards requirement for acceptance. Option B is not a requirement of the Standards; auditors can have past experience as long as it does not impair objectivity. Option C is incorrect as there is no mandated waiting period for providing future assurance services.