According to the International Professional Practices Framework, the Internal Audit

question 258

Multiple Choice

According to the International Professional Practices Framework, the internal audit activity's decision to defer follow-up of recommendations and management's corrective actions until the next scheduled engagement for the area is justified when:

• A) The reported findings or recommendations are significant enough to require immediate action by management.
• B) The action taken by management to address the recommendation is sufficient when weighed against the importance of the finding.
• C) Management has adequately understood and appropriately accepted the risk of not taking action to implement the recommendation.
• D) The significance of the finding or recommendation will allow auditors to perform monitoring by receiving periodic updates from management on corrective actions taken.

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Definitions:

Sensation Thinker

An individual who predominantly relies on concrete, factual information and logical analysis when making decisions or understanding the world.

Realistic Approach

A practical and sensible method that is based on actual conditions and achievable outcomes.

Human Relations

The study and management of how individuals relate to and interact with one another, especially in the workplace.

Intuitive Feelers

Individuals who primarily rely on intuition and feelings in their decision-making process, often associated with the Myers-Briggs Type Indicator personality types.