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IIA Business Knowledge for Internal Auditing IIA-CIA-Part3 Question # 17 Topic 2 Discussion

IIA Business Knowledge for Internal Auditing IIA-CIA-Part3 Question # 17 Topic 2 Discussion

IIA-CIA-Part3 Exam Topic 2 Question 17 Discussion:
Question #: 17
Topic #: 2

During a routine bank branch audit, the internal audit function observed that the sole security guard at the branch only worked part time. The chief audit executive (CAE) believed that this increased the risk of loss of property and life in the event of a robbery. The branch security manager informed the CAE that a full-time guard was not needed because the branch was in close proximity to a police station. Still, the CAE found this to be an unacceptable risk due to the recent increase in robberies in that area. Which of the following is the most appropriate next step for the CAE to take?


A.

Immediately report the issue to the board to ensure timely corrective actions are taken to resolve the risk


B.

Continue discussions with the security manager until he is persuaded and agrees to increase branch security


C.

Document the security manager’s decision to accept the risk in the audit workpapers


D.

Escalate the issue to the bank’s chief security officer to determine acceptability of the risk


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