An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?
An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?
The most appropriate action for the internal auditor to take in following up on recommendations to enhance internal controls related to investments is to conduct appropriate testing to verify management responses. This ensures that the corrective measures have been properly implemented and are functioning effectively. Observing corrective measures may not provide sufficient assurance of their effectiveness, seeking a management assurance declaration does not verify the actual implementation, and waiting until the next scheduled audit could delay identifying any issues with the corrective actions.
Just curious to find out how D is the correct answer because A seem more appropriate as part of follow up process. How is an auditor expected to conducting testing on "management's responses"? action plan sounds more like it
Depends on the significance and risk related to matter.