Which of the following relates to the concept of due professional care?

Due professional care requires internal auditors to apply the care and skill expected of a reasonably prudent and competent internal auditor. This concept is fundamentally linked to the auditor's proficiency and diligence. Demonstrating a good understanding of the steps involved in an engagement is a direct reflection of an auditor's competence and knowledge, which are essential components for exercising due professional care as mandated by the IIA Standards. This ensures that the engagement is conducted effectively and the auditor is equipped to identify risks and formulate appropriate procedures.

A. This describes a scope limitation or an impairment to independence, which hinders the audit, rather than illustrating the auditor's professional care.
B. This relates to the organizational independence and governance structure of the internal audit activity, not the application of care by an individual auditor during an engagement.
D. This scenario points to a potential impairment of the internal audit activity's independence and objectivity, as resource allocation is controlled by an auditee.

1. The Institute of Internal Auditors (IIA). (2017). International Standards for the Professional Practice of Internal Auditing (Standards).

Standard 1220: Due Professional Care: "Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility." The interpretation further clarifies that exercising due care involves applying the auditor's knowledge and skills.

Standard 1210: Proficiency: "Internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities." This standard directly links the competence described in option C to the professional obligations of an auditor.

2. Pickett, K. H. S. (2011). The Internal Auditing Handbook (3rd ed.). Wiley.

Chapter 5, "Due Professional Care," explains that care is demonstrated through the auditor's competence, which includes understanding the objectives, risks, and controls of the area under review and the techniques required to perform the engagement (p. 87).

3. Moeller, R. R. (2016). Brink's Modern Internal Auditing (8th ed.). Wiley.

Chapter 4, "IIA Professional Standards," discusses Standard 1220, emphasizing that due professional care requires auditors to be proficient in audit principles and techniques. An understanding of engagement steps is a fundamental aspect of this proficiency (pp. 80-81).