Does the CAE’s decision violate the Standards?

Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules.

Does the CAE’s decision violate the Standards?
A . No, because the Standards do not specify whether follow-up is needed.
B . No, because when there is evidence of sufficient motivation by the client, there is no need for follow-up action.
C . Yes, because scarcity of resources is not a sufficient reason to omit follow-up action.
D . Yes, because the Standards require the auditors to determine whether the client has appropriately implemented all of the auditor’s recommendations.

View Answer

Answer: C