The Chief Audit Executive (CAE) Notes That Management Has Adopted

Multiple Choice

The chief audit executive (CAE) notes that management has adopted the option of not taking action on an audit issue involving a sizeable risk which has been accepted in the past. Which would be an appropriate action by the CAE?

A) Close the issue by noting that follow-up will be completed as part of the next engagement.
B) Discuss the matter with management to determine a resolution.
C) Accept management's decision as the same risk has been accepted in the past.
D) Report the situation to the board for immediate resolution.