The chief audit executive (CAE) of an organization has completed this year’s risk-based audit plan and realized that current staff resources are insufficient to meet the needs of the plan. What course of action should the CAE take?
A.
Amend the audit plan so that available audit resources are adequate to meet the plan’s requirements.
B.
Inform the board and senior management of the resources needed, as well as the associated risks.
C.
Communicate early to those unit managers whose areas would most likely not be able to get reviewed.
D.
Get approval from human resources regarding overtime payment to be made in an effort to complete the audit plan.
Per IIA Standard 2020: Communication and Approval, the CAE must inform senior management and the board if the audit plan cannot be executed as approved due to resource constraints. This allows senior leaders to decide whether to provide additional resources or adjust the plan. Option A would bypass the necessary approval process. Option C shifts responsibility without addressing the root issue, while Option D may not adequately resolve resource constraints.
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