Which of the following conditions should a chief audit executive take into account when deciding if a follow-up audit engagement is necessary?
The reported observations were significant and high risk.
Internal audit resources and the time it will require for follow-up.
Management may not have the resources to take action.
Management has previously decided not to take any action.
When deciding if a follow-up audit engagement is necessary, a chief audit executive should consider if the reported observations were significant and high risk, whether management may not have the resources to take action, and if management has previously decided not to take any action. These considerations reflect the importance of the initial findings, the likelihood of management's ability to implement corrective measures, and past behavior indicating potential non-compliance. While the availability of internal audit resources and time for follow-up is important for scheduling and planning purposes, it is not as critical as the need to ensure significant and high-risk issues are addressed.
Please explain why not C. Insufficient audit resources should not be a reason to not plan a Follow up
I also believe that C is correct here and not B. Why CAE should take into consideration whether IA has proper resources. It is more important to ask whether business has sufficient resources to correctly close the action. Please explain. Thanks
I strongly believe it should be C, not having sufficient audit resources is not a reason to take into account when following up
Please number the choices ay ay ay