When conducting a consulting engagement to improve the efficiency and quality of a production process, the audit
Question:
When conducting a consulting engagement to improve the efficiency and quality of a production process, the audit team is faced with a scope limitation because several months of the production data have been lost or are incomplete. Faced with this scope limitation, the CAE should:
a. Resign from the consulting engagement and conduct an audit to determine why several months of data are not available.
b. Discuss the problem with the customer and together evaluate whether the engagement should be continued.
c. Increase the frequency of auditing the activity in question.
d. Communicate the potential effects of the scope limitation to the audit committee.
Step by Step Answer:
Internal Auditing Assurance & Advisory Services
ISBN: 9780894139871
4th Edition
Authors: Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Cris Riddle, Mark Salamasick, Paul J. Sobel