A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest…

The correct answer is C. Evaluate the completeness of the report and management's responses to identified deficiencies. The greatest assurance over management's assertions would be provided by evaluating the completeness of the report and management's responses to identified deficiencies. This involves ensuring that all relevant control processes and deficiencies have been identified, and that…

Conducting Internal Audit Engagements

Question

A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?

Options

AAssert whether the described and reported control processes and systems exist.
BAssess whether senior management adequately supports and promotes the internal control culture
CEvaluate the completeness of the report and management's responses to identified deficiencies.
DDetermine whether management's operating style and the philosophy described in the report

How the community answered

(18 responses)

A
17% (3)
B
6% (1)
C
56% (10)
D
22% (4)

Explanation

The greatest assurance over management's assertions would be provided by evaluating the completeness of the report and management's responses to identified deficiencies. This involves ensuring that all relevant control processes and deficiencies have been identified, and that management has provided appropriate and comprehensive responses to each issue. This step ensures that the internal control assessment is thorough and that management is actively addressing any weaknesses.

Topics

#management assertions#internal control assessment#CAE assurance#control evaluation

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