A Chief Audit Executive (CAE) Is Obtaining Information Required by a Regulatory

question 116

Multiple Choice

A chief audit executive (CAE) is obtaining information required by a regulatory oversight body and discovers a situation that requires management to take immediate corrective action. What is the best course of action for the CAE to take?

• A) Wait until all of the information has been gathered and reported to the oversight body before reporting the situation to management.
• B) Check with legal counsel to determine whether the situation can be reported to management before all information has been submitted to the oversight body.
• C) Report the situation to management immediately.
• D) Schedule an engagement to explore the situation in depth, before reporting to either management or the oversight body.

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Definitions:

Memory Processing

The series of actions that the brain undertakes to encode, store, and retrieve information.

Legal Purposes

Refers to activities or actions that are carried out in accordance to the law or intended to fulfill legal requirements.

Recollections

The action of remembering something or the process of bringing past experiences or events back into one’s mind.

Three-System Model

A theoretical framework that explains a concept or process using three distinct but interrelated components.