Step-by-Step Detailed Explanation:
A . Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies:
The Standards allow for outsourcing or co-sourcing to meet competency gaps. Declining outright is not necessary.
B . Accept the audit engagement and use the engagement as an opportunity to develop the audit team's IT expertise while performing the audit work:
This approach risks compromising audit quality as the team lacks expertise.
C . Temporarily hire an experienced and knowledgeable IT analyst from the organization's IT department to lead the audit:
This could create independence issues, as the IT analyst is part of the auditee's function.
D . Outsource the audit engagement to a reputable IT audit consulting firm:
Correct. Outsourcing ensures that the engagement is performed by qualified professionals, maintaining quality and adherence to the Standards.
CIA Exam Syllabus Reference:
Domain IV: Managing the Internal Audit Function - Resourcing and Competency Management.