Question

An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

Accepted Answer

Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

Answer

Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.

Answer

Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.

Answer

Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the…

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