A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?
A.
Assert whether the described and reported control processes and systems exist.
B.
Assess whether senior management adequately supports and promotes the internal control culture described in the report.
C.
Evaluate the completeness of the report and management's responses to identified deficiencies.
D.
Determine whether management's operating style and the philosophy described in the report reflect the effective functioning of internal controls.
The greatest assurance over management's assertions would be provided by evaluating the completeness of the report and management's responses to identified deficiencies. This involves ensuring that all relevant control processes and deficiencies have been identified, and that management has provided appropriate and comprehensive responses to each issue. This step ensures that the internal control assessment is thorough and that management is actively addressing any weaknesses. References:
The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2130 - Control.
The IIA’s Practice Guide on Assessing the Adequacy of Internal Controls.
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