An Audit Client Responded to Recommendations from a Recent Consulting

question 190

Multiple Choice

An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?

• A) Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.
• B) Confirm the decision with management and document this decision in the audit file.
• C) Document the issue in the audit file and follow up until the issues are resolved.
• D) Initiate an assurance engagement on the unresolved issues.

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Definitions:

Unconditional Positive Regard

A term from humanistic psychology that indicates accepting and respecting others as they are without judgment or evaluation.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic reactions and anxieties by gradually exposing the individual to the feared object or situation.

Token Economy

A system of behavior modification based on the systematic reinforcement of target behavior through the exchange of tokens that can be redeemed for various rewards.

Participant Modeling

A therapeutic technique wherein a therapist first demonstrates a desired behavior in a step-by-step process, then the client attempts to imitate the behavior with guidance.