Upon completing a follow-up audit engagement, the chief audit executive (CAE) noted that management has not implemented any mitigation measures to address the high risks that were reported in the…

The correct answer is B. Discuss the issue with members of management responsible for the risk area. The initial step the CAE should take is to discuss the issue with the members of management responsible for the risk area. This discussion allows the CAE to understand the reasons for the lack of action, provide an opportunity for management to explain their position, and…

Communicating Results and Monitoring Progress

Question

Upon completing a follow-up audit engagement, the chief audit executive (CAE) noted that management has not implemented any mitigation measures to address the high risks that were reported in the initial audit report. What initial step must the CAE take to address this situation?

Options

ACommunicate the issue to senior management.
BDiscuss the issue with members of management responsible for the risk area.
CReport the situation to the external auditors.
DEscalate the issue to the board.

How the community answered

(61 responses)

A
3% (2)
B
80% (49)
C
5% (3)
D
11% (7)

Explanation

The initial step the CAE should take is to discuss the issue with the members of management responsible for the risk area. This discussion allows the CAE to understand the reasons for the lack of action, provide an opportunity for management to explain their position, and encourage them to implement the necessary mitigation measures. If this discussion does not lead to satisfactory action, the CAE would then escalate the issue to senior management or the board as

Topics

#follow-up engagement#unmitigated risk#CAE escalation#management communication

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