Management Requested the Chief Audit Executive (CAE) to Include an Audit

question 269

Multiple Choice

Management requested the chief audit executive (CAE) to include an audit of the organization's health and safety program in next year's annual audit plan. However, the internal audit department has no expertise in this area. Which of the following would be the most appropriate action by the CAE?

• A) With management's agreement, amend the scope of the audit to ensure that areas examined do not require specialized knowledge and expertise.
• B) Meet with management to explain that the audit cannot be undertaken and discuss alternative strategies that can be implemented until internal audit can develop its capability in the area.
• C) Accept the request provided management has conducted a thorough risk assessment prior to the engagement to help guide the audit.
• D) Advise management that compliance audits of this type should only be conducted by the corresponding regulatory agency to ensure independence.

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Definitions:

Hypothetical Propositions

Statements or propositions that are based on assumptions or hypothesis rather than on concrete evidence.

Formal Operations

A stage in Jean Piaget's theory of cognitive development where individuals gain the ability to think abstractly, logically, and systematically, typically beginning in adolescence.

Ability

The possession of the means or skill to do something or perform a task effectively.

Private Speech

Vocal communication that individuals direct to themselves, often used as a tool for thought processing and problem-solving, particularly in children.