According to IIA guidance, which of the following is the most appropriate action to be taken by the chief executive (CAE) if management refuses to accept audit recommendations and implement…

Question

Options

• AThe CAE should continue to meet with management to obtain their agreement for corrective action
• BThe CAE should note in the final report that management has decided to accept the risk.
• CThe CAE should ask that additional testing be undertaken to strengthen his case as to the need for
• DThe CAE should advise senior management of his intention to escalate the matter to the board.

• A
  4% (1)
• B
  19% (5)
• C
  8% (2)
• D
  69% (18)

Explanation

According to IIA guidance, if management refuses to accept audit recommendations and implement corrective actions, the chief audit executive (CAE) has a responsibility to ensure that the audit committee or the board is aware of the unresolved risks. The CAE should escalate the matter to senior management first. If senior management still does not take action, the CAE should then inform the board. This escalation process ensures that the board is fully informed about significant risks that management has decided to accept and can take appropriate action if

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