Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 196

An engagement team is being assembled to audit of one of the organization's vendors. Which of the following statements best applies to this scenario?

Answer options

• A. The engagement team should include internal auditors who have expertise in investigating vendor fraud.
• B. The engagement team should be comprised of certified accountants who are proficient in financial statement analysis and local accounting principles.
• C. To preserve independence and objectivity, an auditor who worked for the vendor two years prior may not participate on the engagement team.
• D. The engagement team may include an auditor who lacks knowledge of the industry in which the vendor operates.

Correct answer: D

Explanation

Option D is correct because an auditor can be included in the engagement team regardless of their specific industry knowledge, as long as they can perform their auditing duties effectively. Options A and B incorrectly suggest that specific qualifications are mandatory for all team members, while option C highlights a restriction that is not applicable if the auditor's previous work is outside the specified timeframe.