Which of the Following Statements Is True

question 125

Multiple Choice

Which of the following statements is true?

• A) If management chooses not to take action on internal audit's assurance engagement observation, the chief audit executive (CAE) has a responsibility to propose an action plan to the board.
• B) Internal audit's responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.
• C) When management decides to accept the risk of not taking action on an assurance observation, the (CAE) is responsible for judging whether or not that decision is prudent.
• D) An assurance engagement observation is considered remediated when management's corrective action plan is approved by the board.

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Definitions:

Treatment System

A treatment system refers to the organized network of services and providers that offer and manage healthcare and therapy for specific health issues or disorders.

Intense Treatment

Highly focused or extensive medical or therapeutic care aimed at aggressively addressing a condition or disease.

Drug Laws

Regulations and statutes governing the manufacture, distribution, sale, and use of drugs, both legal and illegal.

Prison Population

The total number of individuals incarcerated in a prison system at any given time.