S3: Proficiency And Due Professional Care

Question 1

What is proficiency?

Answer 1

The knowledge, skills, and other competencies required to carry out professional responsibilities.

Question 2

Internal auditors must consider what when exercising due professional care?

Answer 2

1. Extent of work needed to achieve the engagement’s objectives.
2. Relative complexity, materiality, or significance of matters to which assurance procedures are applied.
3. Adequacy and effectiveness of GRC processes.
4. Probability of significant errors, fraud, or noncompliance.
5. Cost of assurance in relation to potential benefits.

Question 3

Level of knowledge needed to evaluate the risk of fraud

Answer 3

Internal auditors must have sufficient knowledge to evaluate fraud risk, but are not expected to have the expertise of an SME.

Question 4

What level of knowledge is needed of key information technology risks snd available trchnology based audit techniques?

Answer 4

Sufficient knowledge to performed assigned work bit not the expertise of an IT auditor.

Question 5

What are key factors impacting engagement staffing conditions?

Answer 5

1. Type of service
2. Type of engagement
3. Engagement objectives
4. Engagement scope
5. Types of controls involved

Question 6

What is due professional care?

Answer 6

Understanding what needs to be accomplished in the audit along with having the skills necessary to fulfill those steps. (Objectives, scope, competencies, policies and procedures).

Question 7

What must internal auditors consider when exercising due professional care during a consulting activity?

Answer 7

1. Needs and expectations of clients including nature, timing, and communication of results.
2. Relative complexity and event of work needed to achieve the engagement’s objectives.
3. Cost of the consulting engagement in relation to potential benefits