When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?
1. Findings of the last audit engagement performed.
2. Probability of significant errors, irregularities, or noncompliance.
3. Extent of work needed to achieve engagement objectives.
4. Cost of the engagement versus the potential benefits.
When an internal auditor applies due professional care to perform an assurance engagement, she must consider all relevant factors that can affect the quality and effectiveness of the engagement. These factors include: 1) Findings of the last audit engagement performed, as they provide valuable historical context and insights into potential issues. 2) The probability of significant errors, irregularities, or noncompliance, to assess risks and prioritize areas of focus. 3) The extent of work needed to achieve engagement objectives, ensuring that efforts are adequately planned and resources are allocated efficiently. 4) The cost of the engagement versus the potential benefits, to determine the value and justification of the audit work. Therefore, the correct answer is that all four considerations must be taken into account.
Why is no. 1 not considered?
It can be assumed that the findings of the last audit engagement were formalized with due professional care (by applying Options B, C, and D). For the current engagement, it is up to the internal auditor to apply due professional care by implementing Options B, C, and D.
In assurance engagement 1 is not applicable as it is for all type of engagements