If an Engagement Client Disputes That a Specific Action or Process

question 258

Multiple Choice

If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

• A) Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.
• B) Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.
• C) Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.
• D) Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

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Definitions:

Depressed Client

A person receiving therapy or counseling services who is experiencing symptoms of depression, such as persistent sadness or loss of interest in activities.

Negative Interpretations

A cognitive distortion where an individual consistently perceives situations in a more negative light than is warranted.

Learning Perspective

A psychological approach that focuses on how people are influenced by their environment and how learning is impacted by biological, psychological, and sociocultural factors.

Abnormal Behavior

Activities or actions that diverge significantly from the norm or standard in a given culture or society, often leading to psychological distress or dysfunction.