While Reviewing the Draft Report of an Audit Engagement, the Chief

Multiple Choice

While reviewing the draft report of an audit engagement, the chief audit executive (CAE) is not in agreement with management's acceptance of the potential risk exposure resulting from an observed key control weakness. Which of the following actions by the CAE would be appropriate for addressing this concern? • Meet with the auditor-in-charge. • Discuss with senior management. • Monitor the result of the accepted risk. • Report the matter to the board.

A) 1, 2, and 3 only
B) 1, 2, and 4 only
C) 1, 3, and 4 only
D) 2, 3, and 4 only