Which of the following would be the most appropriate approach?

The internal audit activity is asked to review the effectiveness of controls around the disposal of chemical waste. However, the internal auditors on staff lack the necessary skills to conduct this review.

Which of the following would be the most appropriate approach?
A . An internal auditor who recently attended a three-day workshop on chemical waste disposal, and therefore has the most knowledge on the topic, should lead the engagement.
B . A team of available internal auditors should be assembled and should consult with an external
nonaudit expert on chemical waste disposal to plan and conduct the engagement.
C . A team of the most knowledgeable auditors could be assembled and use the engagement work program from the previous year to gather additional insight regarding recommended audit procedures.
D . A nonaudit employee from the chemical disposal area may share his expertise with the audit team, provided the internal audit manager conducts a detailed review of all engagement work performed.

View Answer

Answer: B

Explanation:

When the internal audit staff lacks the necessary skills for a specific audit, such as reviewing controls around the disposal of chemical waste, the most appropriate approach is to assemble a team of internal auditors and consult with an external expert on chemical waste disposal. This ensures that the audit is conducted with the requisite level of technical expertise and objectivity, supported by professional guidance. This approach is in line with best practices that recommend leveraging external expertise when internal competencies do not meet the specific needs of an audit.

Reference: The Institute of Internal Auditors (IIA) – International Professional Practices Framework (IPPF), specifically guidelines on using external experts in audit engagements.