The chief audit executive (CAE) determined that based on management's oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. Which of the following is the most appropriate step for the internal auditor to take next?
Given that the chief audit executive determined the management's oral response and the action taken were sufficient, the most appropriate step is to note in the permanent file that follow-up needs to be performed as part of the next engagement. This approach ensures that the issue will be re-evaluated during the next scheduled audit without necessitating an immediate follow-up, which aligns with risk-based auditing practices and resource management.
2500—Implementation Guide: The CAE includes follow up as part of the work schedule, but scheduling depends on the risk involved and the difficulty and timing of corrective action. If action is already taken suffices, follow up may be part of the next engagemnt. Here the clue I tink is that the statement says "observation was sufficient weighted againts the relative importance of audit recommenadtion"
but the standard states that no need to wait for the next engagement to follow up for the recommendation?
Answer should be A
D is correct; immediate follow up audit is not required and may not be possible also in all cases
this situation shows that the audit issue is closed/resolved. so, follow up can be deferred until next audit engagement - means, this closed audit issues should be verified again until next audit.
D is correct. When planning for next engagement, standard states you should review previous results and make sure recommendations were implemented.