The process of evaluating and escalating observations during an assurance engagement can be relatively complex. It involves several steps and requires a number of professional judgments.
a. What judgments must an internal audit team make during the observation evaluation and escalation process?
b. What are the three levels of observation importance described in this chapter? Briefly describe each level.
c. Why is it important to carefully document the conclusions reached as a result of performing the observation and escalation process?