With respect to the audit management process, management response serves what function?

Question

Options

• Aplacing underperforming units on notice for failing to meet standards
• Bdetermining whether or not resources will be allocated to remediate a finding
• Cadding controls to ensure that proper oversight is achieved by management
• Drevealing the "root cause" of the process failure and mitigating for all internal and external units

• A
  6% (4)
• B
  84% (52)
• C
  2% (1)
• D
  8% (5)

Explanation

In the audit management process, management response is the formal mechanism by which management decides whether and how to address audit findings - meaning they must evaluate each finding and commit (or decline) to allocate resources toward remediation, making B correct.

Why the distractors fail:

• A is wrong because placing units "on notice" is a consequence of poor performance, not the function of the management response itself - that's more of a disciplinary or oversight action.
• C is wrong because adding controls is part of the remediation plan that may follow a management response, not the response's purpose.
• D is wrong because root cause analysis is conducted during the audit fieldwork/findings phase, not the management response phase - and management response doesn't mitigate for external units.

Memory tip: Think of management response as the "now what?" moment - auditors surface a finding, then management must answer: "Will we fix it, and how?" That decision about resource allocation is the core of the response.

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