When determining the level of staff and resources to dedicate to an assurance engagement, the

most critical factor for the chief audit executive (CAE) is ensuring that the available resources possess

the specific skill sets required for the engagement. This ensures that the internal audit team can

effectively address the unique challenges and risks associated with the audit.

Skill Set Relevance: The CAE must match the skills and knowledge of the audit team to the specific

requirements of the audit engagement. This includes technical expertise, industry knowledge, and

any specialized skills needed for the audit.

Resource Allocation: Effective allocation involves not just the number of auditors but ensuring they

have the right competencies to perform the audit tasks proficiently.

Impact on Audit Quality: Allocating resources with the appropriate skill set ensures the audit is

thorough and of high quality, reducing the risk of overlooking critical issues.

Reference:

"Managing Internal Audit Activities," which discusses the importance of aligning audit resources with

the necessary skills for specific engagements .