During an audit engagement, an internal auditor finds that management is not complying with previous commitments made to the external auditors. However, the auditor determines management’s actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:
A. Proceed with the audit engagement and assess the changes actually implemented by management.
B. Compare the recommended changes against the changes made by management and advise management which action to take.
C. Inform the external auditors and remove the associated work from the internal audit scope.
D. Inform the external auditors and seek their guidance.
Answer:A
During an audit engagement, an internal auditor finds that management is not complying with previous commitments made to the external auditors. However, the auditor determines management’s actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:
A. Proceed with the audit engagement and assess the changes actually implemented by management. B. Compare the recommended changes against the changes made by management and advise management which action to take. C. Inform the external auditors and remove the associated work from the internal audit scope. D. Inform the external auditors and seek their guidance.
Explanation: Section: Volume B