A properly supervised engagement ensures that the audit is conducted effectively, efficiently, and in accordance with IIA standards. The auditor in charge has the responsibility to oversee the audit process and ensure that the engagement objectives are achieved.
Detailed Explanation:
IIA Standard 2340 - Engagement Supervision:
This standard requires that engagements be supervised to ensure that objectives are achieved, work is performed according to appropriate standards, and the results are supported by sufficient, relevant, and reliable evidence.
Reasonable Assurance:
The auditor in charge must provide reasonable assurance that the audit engagement's objectives were met. This involves reviewing work performed, ensuring compliance with audit standards, and verifying that conclusions are supported by adequate evidence.
IIA Practice Advisory 2340-1:
The advisory emphasizes the role of the auditor in charge in providing oversight throughout the audit engagement. This includes ensuring that auditors follow procedures, apply professional judgment, and that all significant findings are appropriately addressed.
Why Not Other Options?
Option A (Daily record review): While keeping a record is good practice, it does not constitute comprehensive supervision.
Option B (Review by peers): Peer review is useful but does not replace the overarching responsibility of the auditor in charge.
Option C (Accompanying new auditors): This is part of training and guidance but does not alone ensure that engagement objectives are met.