Which of the Following Situations Would Best Support the Decision

question 318

Multiple Choice

Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?

• A) An audit of the branch office is routinely scheduled every three years.
• B) On-site follow-up of a remote branch may not be feasible due to travel costs.
• C) Branch office management states that correction of the audit issue may take longer than expected.
• D) The CAE and management agree that the corrective action taken to date is sufficient.

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Definitions:

Theater Ticket

A ticket that grants the holder entry to a performance at a theater.

Cost

The amount of money required to purchase, produce, or maintain something.

Categorical

Pertains to data that can be divided into specific groups or categories that are mutually exclusive.

Categorical Data

Data that can be divided into groups or categories that do not have a numerical value or order.