An Internal Audit Activity Encounters a Scope Limitation from Senior

question 212

Multiple Choice

An internal audit activity encounters a scope limitation from senior management that will affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation should be.

• A) Noted in the audit workpapers, but the engagement should be carried out as scheduled, with any necessary adjustments made based on the scope limitation.
• B) Communicated to the external auditors so that they can investigate the area in more detail.
• C) Communicated, preferably in writing, to the board.
• D) Communicated to management, stating that the limitation will not be accepted because it would impair the audit activity's independence.

---

Definitions:

Demonstrated Benevolence

Evident actions or behavior by an individual showing goodwill, kindness, and a willingness to do good towards others.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior.

Virtual Teams

Groups of people who work together from different geographical locations, connected by technology such as email, videoconference, and collaborative software.

Reliable

Worthy of trust; consistently good in quality or performance; able to be depended on.