During an Audit Engagement, an Internal Auditor Finds That Management

question 327

Multiple Choice

During an audit engagement, an internal auditor finds that management is not complying with previous commitments made to the external auditors. However, the auditor determines management's actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:

• A) Proceed with the audit engagement and assess the changes actually implemented by management.
• B) Inform the external auditors and seek their guidance.
• C) Inform the external auditors and remove the associated work from the internal audit scope.
• D) Compare the recommended changes against the changes made by management and advise management which action to take.

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Definitions:

Neocortex

The part of the brain involved in higher-order brain functions such as sensory perception, cognition, generation of motor commands, spatial reasoning, and conscious thought.

Levels-Of-Processing

A theory in cognitive psychology suggesting that deeper levels of analysis produce more enduring memory.

Memory

The ability of the mind to retain and recall information.

Frog

An amphibian creature with long hind legs for leaping, smooth skin, and typically lives both in water and on land.