While Reviewing the Draft Report of an Audit Engagement, the Chief

question 134

Multiple Choice

While reviewing the draft report of an audit engagement, the chief audit executive (CAE) is not in agreement with management's acceptance of the potential risk exposure resulting from an observed key control weakness. Which of the following actions by the CAE would be appropriate for addressing this concern? • Meet with the auditor-in-charge. • Discuss with senior management. • Monitor the result of the accepted risk. • Report the matter to the board.

• A) 1, 2, and 3 only
• B) 1, 2, and 4 only
• C) 1, 3, and 4 only
• D) 2, 3, and 4 only

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used to plan and control finances.

Dealing With Criticism

The ability to handle negative feedback constructively and use it as a tool for personal or professional growth.

Criticism

The expression of disapproval or the identification of faults, either constructively to encourage improvement or negatively.

Negative Message

A piece of communication that conveys bad news, disapproval, or a refusal in a tactful manner to the recipient.