Given the Scarcity of Internal Audit Resources, a Chief Audit

question 86

Multiple Choice

Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. Does the CAE's decision violate the Standards?

• A) No, because the Standards do not specify whether follow-up is needed.
• B) No, because when there is evidence of sufficient motivation by the client, there is no need for follow-up action.
• C) Yes, because scarcity of resources is not a sufficient reason to omit follow-up action.
• D) Yes, because the Standards require the auditors to determine whether the client has appropriately implemented all of the auditor's recommendations.

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Definitions:

Ciliary Ring

A structure in the eye made up of muscles that control the shape of the lens for focusing light on the retina.

Vitreous Humor

The clear gel that fills the space between the lens and the retina of the eyeball, helping maintain its shape and allowing light to pass through.

Fibrous Tunic

Outer layer of the eye; composed of the sclera and the cornea.

Transparent

Allowing light to pass through so that objects behind can be distinctly seen; clear; see-through.