Which of the Following Statements About Internal Audit's Follow-Up Process

question 50

Multiple Choice

Which of the following statements about internal audit's follow-up process is true?

• A) The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.
• B) The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.
• C) Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.
• D) The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

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Definitions:

Risk Aversion

A preference for options that offer more certainty and less potential for loss.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms under which insurance coverage is provided.

Adverse Selection

A situation where incomplete or asymmetric information leads to a market failure, typically in insurance markets, where riskier individuals are more likely to select into plans.

Insurance Companies

Organizations that provide financial protection and compensation for losses to individuals and entities in exchange for premiums.