The Chief Audit Executive (CAE) Notes That Management Has Adopted

question 453

Multiple Choice

The chief audit executive (CAE) notes that management has adopted the option of not taking action on an audit issue involving a sizeable risk which has been accepted in the past. Which would be an appropriate action by the CAE?

• A) Close the issue by noting that follow-up will be completed as part of the next engagement.
• B) Discuss the matter with management to determine a resolution.
• C) Accept management's decision as the same risk has been accepted in the past.
• D) Report the situation to the board for immediate resolution.

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Definitions:

Task Force

A temporary group assembled to focus on a specific task or project, often multidisciplinary, aiming for a particular goal.

Coordination Problems

Issues that occur when entities attempt to align their actions or activities towards a common goal, but face difficulties due to misunderstandings, conflicting interests, or lack of communication.

FORTRAN

A high-level programming language developed in the 1950s for numerical and scientific computing.

Role Conflict

A situation where an individual faces incompatible demands or expectations from different roles they play in their life or work.