Which of the following situations is most critical for the chief audit executive to report to the board?

Question

Options

• AThe chief audit executive disagreed with the business unit manager's initial decision to accept a
• BThe internal audit activity was restructured, which resulted in a significant change in
• CA staff internal auditor had difficulties completing a portion of the audit because management of
• DThe resignation of an internal audit manager during the year caused the chief audit executive to

• A
  50% (18)
• B
  6% (2)
• C
  14% (5)
• D
  31% (11)

Explanation

The most critical situation for the chief audit executive (CAE) to report to the board is the disagreement with the business unit manager's initial decision to accept a particular risk, which was only addressed after discussion with senior management. This situation is critical because it involves a risk that was initially accepted without proper mitigation, which could have significant implications for the organization. Reporting this to the board ensures that they are aware of potential disagreements regarding risk acceptance and management's approach to risk

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