An Auditee Responds to a Corrective Action Request by Stating

question 44

Multiple Choice

An auditee responds to a corrective action request by stating that the problem has never occurred before and is "not the norm for our operation." Which of the following is the most appropriate action for the lead auditor?

• A) Note that the deficiency is the result of a random occurrence.
• B) Draft a response explicitly requesting a more concise root-cause analysis.
• C) Confer with the audit client to assess the appropriateness of the response.
• D) Schedule a follow-up audit immediately.

Analyze the role of disconfirming evidence in strengthening generalizations.

Understand how the method of concomitant variations contributes to identifying causal relations.

Apply the method of residues to infer additional causal factors in complex scenarios.

Recognize the limitations of causal reasoning methods in establishing causality.

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Definitions:

Product Development

The process of creating, designing, and bringing a new product to market.

Market Development

Market development is a strategic effort to expand into new markets or segments, aiming to increase the customer base for a product or service.

Diversification

A strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.

Market Penetration

A measure of the extent to which a product is recognized and bought by customers in a particular market.