The Chief Audit Executive (CAE) Notes During Review of the Final

question 255

Multiple Choice

The chief audit executive (CAE) notes during review of the final report of an assurance engagement that management has decided to accept the risks of two significant exposures identified by the audit. Which of the following actions by the CAE would be least prudent in these circumstances?

• A) Implement follow-up procedures to monitor the potential impact of those risks.
• B) Review the working papers and conclusions as to the perceived residual risk.
• C) Meet with senior management to consider their reasoning for the decision.
• D) Meet with the auditor-in-charge to review the conclusions.

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Definitions:

Birthday Cakes

Bespoke or pre-made cakes specifically designed and decorated for celebrating someone's birthday.

Marginal Cost

The escalation in expenses resulting from the creation of one additional unit of a product or service.

Output

The quantity of goods or services produced within a certain period by a firm, industry, or country.

Variable Cost

Fees that directly alter according to the scale of production or output.