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IIA Internal Audit Function IIA-CIA-Part3 Question # 127 Topic 13 Discussion

IIA Internal Audit Function IIA-CIA-Part3 Question # 127 Topic 13 Discussion

IIA-CIA-Part3 Exam Topic 13 Question 127 Discussion:
Question #: 127
Topic #: 13

An internal auditor discovered that the organization was not in full compliance with a regulatory labeling requirement for one of its products. The responsible manager indicated that the current product labeling has been in use for several years without any problems. If discovered, this regulatory breach could result in significant fines for the organization. What should be the chief audit executive's next course of action?


A.

Discuss the matter with the CEO and other senior management


B.

Recommend that disciplinary action be taken against the manager for exposing the company to such risk


C.

Communicate to the board the current situation, including the risk exposure to the company


D.

Take on the initiative of implementing corrective actions to mitigate the identified risks


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