A chief audit executive's report to the board showed a significant trend of recent aud4s going over planned budgeted hours. Which of the following factors could cause this trend?

The correct answer is A. Poor engagement supervision. One of the primary factors that could cause audit engagements to go over the planned budgeted hours is poor engagement supervision. Effective supervision ensures that the audit is progressing as planned, that issues are identified and addressed promptly, and that resources are…

Managing the Internal Audit Activity

Question

Options

APoor engagement supervision
Bineffective board reporting
CUntimely observation follows up and closure
DLimited staff resources

How the community answered

(38 responses)

A
84% (32)
B
3% (1)
C
5% (2)
D
8% (3)

Explanation

One of the primary factors that could cause audit engagements to go over the planned budgeted hours is poor engagement supervision. Effective supervision ensures that the audit is progressing as planned, that issues are identified and addressed promptly, and that resources are used efficiently. Without proper supervision, audits may experience delays, scope creep, and inefficient use of time, leading to overruns in budgeted hours. Other factors, such as untimely follow-up and limited staff resources, can contribute to inefficiencies, but poor supervision is often a key driver.

Topics

#engagement supervision#budget overrun#audit management#planned hours

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