Management has taken immediate action to address an observation received during an audit of the organization ' s manufacturing process Which of the following is true regarding the validity of the observation closure?
A.
Valid closure requires evidence that ensures the corrected process will function as expected in the future
B.
Valid closure requires the client lo address not only the condition, but also the cause of the condition
C.
Valid closure of an observation ensures it will be included in the final engagement report
D.
Valid closure requires assurance from management that the original problem will not recur in the future
Valid closure of an audit observation requires evidence that the corrected process will function as expected in the future. This involves not just addressing the immediate condition but also ensuring that the root cause has been addressed and that the implemented corrective actions are sustainable and effective in preventing recurrence. This ensures that the underlying issue has been resolved comprehensively. References:
The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2500 - Monitoring Progress.
The IIA’s Practice Guide on Audit Follow-up.
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