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

Multiple Choice

The chief audit executive (CAE) decided that based on management's oral response, the action taken on an audit observation for a minor improvement in the client's process is sufficient and no further follow-up is necessary. Which of the following would be the best statement regarding the action of the CAE?

A) The CAE action is not acceptable, as a follow-up audit is needed to ensure that action is really taken by management.
B) The CAE action is not acceptable, as follow-up on the issue is critical until a written response is obtained from management.
C) The CAE action is acceptable as long as the follow-up is sufficient when weighed against the relative importance of the recommendation.
D) The CAE action is acceptable as long as the issue has been escalated to the board to get their position on the issue.