What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

Comprehensive and Detailed Step-by-Step Explanation:

Reference to IIA Standards:

Standard 2210 - Engagement Objectives: Internal auditors must establish objectives for each

engagement to align with the organization's goals and address identified risks.

Reasoning:

Option A is correct because engagement objectives focus on ensuring audit procedures target and

mitigate identified risks effectively.

Option B (common understanding) is important for team alignment but is secondary to risk-focused

objectives.

Option C (considering work of other assurance providers) is part of planning but not the primary

purpose of setting objectives.

Importance of Objectives:

Engagement objectives drive the audit’s focus, ensuring that procedures are purposeful and tailored

to mitigate relevant risks.