According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
A) The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments. II. Treasury management has not instituted any risk management policies. III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent. IV. The external auditors have indicated some difficulties in obtaining account confirmations.
B) I and II only
C) I and IV only
D) I, II, and III only
E) II, III, and IV only

Question

Quizplus · Accepted Answer

The correct answer is C because the internal auditor must take into consideration the audit committee's request for assurance of compliance with the new policy on the use of financial instruments (I) and the external auditors' difficulties in obtaining account confirmations (IV).

According to the Standards, Which of the Following Must an Internal