During the second half of the audit year, the chief audit executive (CAE) identified significant...

IIA IIA-CIA-Part3 Question Answer

During the second half of the audit year, the chief audit executive (CAE) identified significant negative variances to the approved audit budget required to complete the internal audit plan. Which of the following actions should the CAE take?

Revise the internal audit plan to reduce coverage of new strategic critical areas so that the approved budget can be met

Reduce the scope of the remainder of the engagements in the internal audit plan to reduce overall costs

Communicate to senior management and the board the risk of not being able to complete the audit plan

Continue to complete the plan regardless of the budget variances, as the audit function is invaluable to sound corporate governance

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During the second half of the audit year, the chief audit executive (CAE) identified significant...

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