A Chief Audit Executive (CAE) Has Decided to Add an Engagement

question 279

Multiple Choice

A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?

• A) Present the plan change to senior management and request additional resources before going to the board of directors.
• B) Seek approval from senior management and the board of directors for the plan change and advise them of the issue of limited resources.
• C) Add this change to the plan and request senior management to indicate which other engagement should be deleted to keep the overall plan within resource constraints.
• D) Immediately seek additional resources from senior management and the board of directors to meet the needs of the organization.

---

Definitions:

Connectedness

The state or feeling of being connected and having close relationships with others.

Closure

A psychological term referring to an individual's desire for a firm answer to a question and an aversion toward ambiguity.

Ocean

A large body of saltwater that covers approximately 71% of the Earth's surface, subdivided into five major oceans.

Binocular Cue

A visual signal that requires the coordination of both eyes to perceive depth and distance.