The Chief Audit Executive (CAE) Determined That Based on Management's

Multiple Choice

The chief audit executive (CAE) determined that based on management's oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. Which of the following is the most appropriate step for the internal auditor to take next?

A) Initiate a follow-up audit to ensure that action has really been taken.
B) Follow-up with management until a written response is obtained.
C) Escalate the issue to the board and get their position on the issue.
D) Note in the permanent file that follow-up needs to be performed as part of the next engagement.