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?
A) Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.
B) 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.
C) Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.
D) Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

Question

Quizplus · Accepted Answer

Employing a financial derivatives expert provides the necessary expertise for the audit, while a seminar can enhance the internal team's knowledge without significantly delaying the project.

An Organization's Chief Audit Executive (CAE) Determines That the Internal