Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?
A.
An audit of the branch office is routinely scheduled every three years.
B.
On-site follow-up of a remote branch may not be feasible due to travel costs.
C.
Branch office management states that correction of the audit issue may take longer than expected.
D.
The CAE and management agree that the corrective action taken to date is sufficient.
IPPF 2010
The chief audit executive must establish a risk-based plan to determine the priorities of the internal audit activity.
C has nothing to do with risk.
D CAE believes that the risk is reduced.
Can someone explain why D is the answer and not C? Shouldn't there be a form of validation before CAE can conclude that corrective action taken is sufficient?
I also thought of C, bcos the question says defer a follow up engagement. If corrective action has been taken, a follow ip engagement should be carried out immediately.
Am still thinking why D.
CAE can only agree with management after performing a validation of management's claim.
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