Which of the following actions has the least influence on the chief audit executive's development of an audit plan?
Which of the following actions has the least influence on the chief audit executive's development of an audit plan?
The least influential action on the chief audit executive's development of an audit plan is an evaluation of the complexity of each audit engagement. While complexity may determine resources and time needed, it does not significantly influence whether an engagement should be included in the audit plan. Factors like input from senior management and the board, changes in the organization's structure or budget, and risk assessments are more critical because they directly affect what areas need auditing and the prioritization of different engagements.
I think the implicit issue is to choose what to include in the audit plan (based on the audit universe). In view of the MCQ, it is necessary to take into account: - expectations of governance bodies; - changes in the organization (perhaps some elements are no longer relevant); - engagement priorities (based on risk assessment). The complexity of an engagement doesn't prevent it from being carried out. The CAE has an obligation of results. E.g. The CAE can rely upon external service providers.
Could someone please explaina that for me? Thanks