In Response to an Audit Finding, Senior Management Informed the Auditor

question 377

Multiple Choice

In response to an audit finding, senior management informed the auditor that the issue would be investigated and resolved when time permitted. According to the International Professional Practices Framework, this action was not acceptable because:

• A) The appropriate level of management was not involved in the review and resolution of the issue.
• B) Responses should include sufficient information to evaluate the adequacy and timeliness of corrective action.
• C) The board had not reviewed management's responses to the engagement observations and recommendations.
• D) Other departments should have been contacted to determine if they shared responsibility for corrective action.

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Definitions:

Embryonic Cells

Cells that originate from the embryo and have the potential to develop into any type of body cell, possessing high degrees of plasticity and the ability to proliferate.

Dipnoi

A group of fish also known as lungfish, characterized by their ability to breathe air using lungs in addition to gills.

Actinistia

A subclass of mostly extinct fish, with the modern coelacanths being the only living representatives, characterized by lobed fins.

Coelacanth

A rare order of fish that was thought to be extinct until found alive in 1938, known for its lobed fins which resemble primitive leg structures.