With respect to Key Performance Indicators, auditors should ________.
A)disregard them as they would be unrelated to the audit
B)ask management to provide a detailed explanation of which KPIs are of the most importance to them so that related audit procedures can be planned
C)assign the task of investigation to the internal audit function
D)assign new KPIs to the client as a result of the audit process

Question

Quizplus · Accepted Answer

Auditors should not disregard KPIs as they can provide valuable insight into the company's performance and potential areas of risk. Instead, they should ask management to identify which KPIs are most important to them, so that the audit procedures can be planned accordingly. This will ensure that the auditor is focused on the areas that matter the most to the client and will provide the best value to the organization. Assigning the task of investigation to the internal audit function may be a possibility, but the external auditor still needs to take responsibility for overseeing the audit process. Generally, auditors should not assign new KPIs to the client, as they are not responsible for setting goals or creating strategies for the company.

With Respect to Key Performance Indicators, Auditors Should ________