Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 295

Some time after the final audit report was issued, the engagement supervisor learned that several internal control deficiencies were not remedied, despite management's previous agreement to remedy them. According to IIA guidance, which of the following is the most appropriate response?

Answer options

• A. The engagement supervisor must notify the chief audit executive (CAE) that the deficiencies have not been rectified.
• B. The engagement supervisor should rely on professional judgment as to whether the CAE should be informed, or the management action plan should be adjusted.
• C. The engagement supervisor should rely on his negotiation skills and issue an ultimatum to management to remedy the control deficiencies.
• D. Ensure that these deficiencies are captured in the documentation as high-priority areas to be reviewed during the next audit.

Correct answer: D

Explanation

The correct answer is D, as it ensures that the unresolved deficiencies are documented and prioritized for future audits, promoting accountability. Option A, while notifying the CAE is important, does not address future actions regarding the deficiencies. Option B leaves too much to subjective judgment without a clear course of action, and Option C suggests an inappropriate approach by issuing ultimatums, which is not a professional method of engagement.