Ensuring the quality of an audit engagement, especially a consulting engagement in a complex area like human resources, requires effective supervision and quality assurance measures. Peer review during fieldwork is a recognized method for maintaining high-quality audit work.
* IIA Standard 2340 - Engagement Supervision:
* This standard requires that engagements be properly supervised to ensure that objectives are achieved, quality is maintained, and audit work is consistent with IIA standards. Peer reviews during fieldwork can help identify issues early and improve the overall quality of the audit.
* Fieldwork Peer Review:
* Quality Assurance: Peer reviews involve having another auditor review the work performed during fieldwork. This process helps identify any potential issues or improvements in real-time, ensuring that the final work product meets the required standards.
* Continuous Improvement: By incorporating peer reviews, the internal audit activity can ensure that best practices are followed, and any deviations from the standard audit process are corrected promptly.
* IIA Practice Advisory 2340-1:
* This advisory recommends peer reviews as a method to ensure quality and to provide feedback to auditors on their work, enhancing the effectiveness of the engagement.
* Option A (Assign an experienced manager): While supervision is essential, peer reviews provide additional quality checks beyond just monitoring by a manager.
* Option C (Standardized work program): This ensures consistency but may not be sufficient to ensure quality without additional review mechanisms.
* Option D (CAE personally supervising): This is not the most efficient use of the CAE's time. Peer review distributes the supervisory load and adds value through diverse perspectives.
Detailed Explanation:Why Not Other Options?Conclusion: Option B is correct as it aligns with best practices for quality assurance in internal auditing, particularly in ensuring the effectiveness and efficiency of the engagement through peer reviews during fieldwork.