Management Should Be Included in the Development of the Audit

question 413

Multiple Choice

Management should be included in the development of the audit plan in order to:

• A) Provide assurance that past audit recommendations have been properly implemented.
• B) Select the audit tests that will be used for each engagement.
• C) Verify that the highest risks are included in the risk-based audit plan.
• D) Guarantee access to the organization's sites and records for audit work.

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Definitions:

Breach of Contract

The inability to fulfill any condition of an agreement, whether documented or verbal, without a valid legal reason.

Mitigate Damages

A legal principle requiring a party suffering loss to take reasonable action to minimize the extent of the damage or loss.

Nonbreaching Party

The party in a contract who has not violated the agreement and is often entitled to legal remedies.

Reliance Damages

Compensation granted for loss suffered as a result of relying on a promise or agreement that was later breached.