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An organization has acquired a new line of business. None of the organization's internal auditors have the required expertise to perform an internal audit of the new business line; therefore, the chief audit executive (CAE) has contracted the services of an external audit firm to perform the engagement. The CAE has assigned a member of the internal audit team to assist the external team with the engagement. According to the Standards, which of the following statements is true regarding supervision of the engagement?
A. The CAE may rely upon the external firm's auditor in charge to supervise the engagement.
B. The CAE is not responsible for the quality of an audit performed by an external firm.
C. The external firm's auditor in charge must defer to the judgment of the CAE for any disputes.
D. The CAE should not assign an inexperienced staff member to assist with the engagement.
Answer: C
NEW QUESTION: 2
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B. TRUE
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