A Chief Audit Executive (CAE) Received a Detailed Internal Report

question 330

Multiple Choice

A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?

• A) Assert whether the described and reported control processes and systems exist.
• B) Assess whether senior management adequately supports and promotes the internal control culture described in the report.
• C) Evaluate the completeness of the report and management's responses to identified deficiencies.
• D) Determine whether management's operating style and the philosophy described in the report reflect the effective functioning of internal controls.

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Definitions:

Daily

Occurring every day; frequent or habitual.

Deadline

A set date or time by which something must be completed or submitted, often used to ensure timely completion of tasks.

Clustering

A method of organizing ideas by grouping similar items, concepts, or themes together.

Gathering

The process of collecting information or data from various sources for a specific purpose.