CS Professional · Internal and Forensic Audit · Internal Controls
After issuing a report to Yamuna Foods Ltd, the internal audit head wants to confirm that management has actually acted on agreed recommendations on internal controls. Which activity serves this purpose?
Follow-up of the status of agreed action points serves this purpose. The internal auditor checks whether management implemented the recommendations on control weaknesses and reports the status to the audit committee, ensuring that reporting leads to actual improvement.
- AFollow-up of the status of agreed action pointsCorrect
- BDrafting a fresh audit charter
- CPreparing the next year's budget
- DReplacing the audit committee
Explanation
Follow-up reviews whether management has implemented the agreed corrective actions or accepted the risk of not doing so, and its status is reported to the audit committee. The other options are unrelated to verifying implementation.
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