When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding the engagement supervisors review notes?
A.
The review notes may be cleared from the final documentation once the engagement supervisors concerns have been addressed
B.
Management of the area under review must address the engagement supervisors review notes before the audit report can be finalized.
C.
The chief audit executive must initial or sign the engagement supervisors review notes to provide evidence of appropriate engagement supervision.
D.
Review notes provide documented proof that the engagement is supervised properly and must be retained for the quality assurance and improvement program
Review notes are comments or questions posed by engagement supervisors during the review of workpapers to ensure audit quality and completeness.
IIA Guidance on Review Notes:
According to the IIA, review notes serve as a tool for engagement supervisors to seek additional evidence or clarification.
Options Analysis:
Option A: This is correct as per IIA guidance, once concerns have been addressed, review notes can be cleared from the final documentation.
Option B: Management does not typically address review notes; these are internal audit processes.
Option C: The CAE does not need to initial or sign the review notes, as the engagement supervisor's review is sufficient.
Option D: While review notes must be addressed, they do not necessarily need to be retained after being resolved.
Conclusion:
The correct procedure allows for review notes to be cleared once the engagement supervisor’s concerns are addressed, streamlining the documentation process.
IIA’s International Professional Practices Framework (IPPF).
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