Which of the following is the MOST important requirement and guidance for testing during an audit?
Which of the following is the MOST important requirement and guidance for testing during an audit?
Regulations are the most important requirement and guidance for testing during an audit because they define the mandatory standards and compliance obligations an organization must follow. Failure to adhere to regulations can result in significant penalties, fines, or loss of certifications, making them the highest priority over other considerations such as the needs of stakeholders, shareholders, and management.
Regulations requirements are mandatory if compliance is a must. These can get the organization fined or lose it compliance/certifications. Requirements from management, stakeholders, and shareholders can have different levels of scope which might or might not include regulations requirements.
For me answer is C because Management will include also Regualtory requirement and may have more internal requirement
read again the quetion.
REGULATIONS
Answer D is correct as listed
During an audit, testing must adhere to the most important requirement and guidance, which comes from applicable regulations and compliance frameworks. Regulations dictate what must be tested, how it should be conducted, and the standards that must be met. While stakeholders, shareholders, and management are important, they do not provide direct testing requirements—they may set priorities or expectations, but regulatory compliance is the primary driver of audit testing.