How would the CAE proceed to determine the objectives of this engagement?

An organization’s finance manager plans to implement a state-of-the-art management system to better manage the organization’s receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system.

How would the CAE proceed to determine the objectives of this engagement?
A . Ask the CEO to determine the scope and objectives of the engagement
B. Request that the board disclose its concerns over governance for inclusion in the engagement
C. Discuss the concerns with the finance manager and work together to agree on the engagement objectives
D. Review previous audit reports from the area and develop engagement objectives to address the area’s key risks and controls

View Answer

Answer: C