Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 69

Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?

Answer options

• A. Internal auditors ensure that the work program is appropriately designed in order to identify all of the risks surrounding the payroll process.
• B. Internal auditors determine whether the policies, procedures, and practices of the payroll department are operating in accordance with relevant laws.
• C. Internal auditors verify whether the board of directors has implemented effective internal controls over the processes used by the payroll department.
• D. Internal auditors ask the organization’s risk manager to determine whether the degree of work planned is sufficient to determine whether payroll payments were complete and accurate.

Correct answer: B

Explanation

Option B is correct because it emphasizes the auditors' responsibility to ensure compliance with laws, which is a critical aspect of due professional care. Options A, C, and D, while related to audit activities, do not specifically address the auditors' obligation to evaluate adherence to legal requirements, making them less appropriate as examples of exercising due professional care.