This Chief Audit Executive (CAE) Engaged an Internal Auditor to Consult

question 296

Multiple Choice

This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline. Which of the following would be the best course of action for the CAE to take?

• A) Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.
• B) Ask that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.
• C) Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.
• D) Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.

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Definitions:

Groupthink

A phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Malingering

The act of intentionally feigning or exaggerating physical or psychological symptoms for personal gain.