Which of the following actions should the chief audit executive take when senior management decides to accept risks by choosing to do business with a questionable vendor?

Question

Options

• APersuade senior management to take appropriate action.
• BCancel issuing the engagement report due to the assumed risks.
• CAccept senior management's assumption of the risks.
• DDiscuss the issue with the board for them to take appropriate action.

• A
  5% (2)
• B
  8% (3)
• C
  13% (5)
• D
  75% (30)

Explanation

If senior management decides to accept risks, such as doing business with a questionable vendor, and the chief audit executive (CAE) believes this poses a significant risk to the organization, the CAE should escalate the issue to the board. The board has the ultimate responsibility for overseeing risk management and can decide on the appropriate action to take in response to the risk.

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