Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to…

Question

Options

• AConduct another audit engagement to ensure all risks related to the sales of scrap metal have
• BEnsure new procedures have been documented, approved, and distributed to the employees
• CPerform retesting to confirm that new procedures address the previously identified deficient control
• DAnalyze the new procedures, then report to senior management whether the associated risks have

• A
  12% (4)
• B
  6% (2)
• C
  79% (27)
• D
  3% (1)

Explanation

After management has implemented an action plan to improve controls, the most appropriate follow-up action for the auditor is to perform retesting. Retesting involves verifying that the new procedures are effective in addressing the control deficiencies identified during the initial audit.

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