During an Audit of Financial Contracts, an Internal Auditor Learns

question 139

Multiple Choice

During an audit of financial contracts, an internal auditor learns that a relative has a substantial loan with the organization. The auditor should:

• A) Exclude the relative's information from the audited work and proceed with the audit engagement.
• B) Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.
• C) Immediately withdraw from the audit engagement.
• D) Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.