Question
Internal auditing has planned an engagement to evaluate the effectiveness of the quality assurance function as it affects the receipt of goods, the transfer of
Internal auditing has planned an engagement to evaluate the effectiveness of the quality assurance function as it affects the receipt of goods, the transfer of the goods into production, and the scrap costs related to defective items. The engagement client argues that such an engagement is not within the scope of the internal audit activity and should come under the purview of the quality assurance department only. What is the most appropriate response?
A. Refer to the internal audit activity’s charter and the approved engagement plan that includes
the area designated for evaluation in the current time period.
B. Because quality assurance is a new function, seek the approval of management as a
mediator to set the scope of the engagement.
C. Indicate that the engagement will evaluate the function only in accordance with the standards
set by, and approved by, the quality assurance function before beginning the engagement.
D. Terminate the engagement because it will not be productive without the client’s cooperation.
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