The chief audit executive of a large publicly held bank is using a risk based approach to update the annual audit plan. Which of the following sources of information will have the least impact on the plan?
The chief audit executive of a large publicly held bank is using a risk based approach to update the annual audit plan. Which of the following sources of information will have the least impact on the plan?
The chief audit executive of a large publicly held bank updating the annual audit plan using a risk-based approach would prioritize information directly affecting the bank's operations, strategies, and compliance with regulations. Recent changes to the bank's strategic plan (B), regulatory changes impacting capitalization (C), and continuous changes in the prime lending rate (D) significantly influence the bank's risk environment. However, the 12 month forecast of commercial property values (A) would have the least impact, as it is more indirectly related to the bank's immediate risk profile and audit priorities.
Why D is the right answer?! we are talking about the current audit plan so I would say A is there obvious choice here. Please explain this one. Thanks
The point here is updating the current audit plan with emerging issues depending on the risk, so the least impact is from continuous changes (D).
It is about updating the plan, but information D is not static.