An internal audit activity encounters a scope limitation from senior management that will affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation should be.
A) Noted in the audit workpapers, but the engagement should be carried out as scheduled, with any necessary adjustments made based on the scope limitation.
B) Communicated to the external auditors so that they can investigate the area in more detail.
C) Communicated, preferably in writing, to the board.
D) Communicated to management, stating that the limitation will not be accepted because it would impair the audit activity's independence.

Question

Quizplus · Accepted Answer

The nature of the scope limitation should be communicated, preferably in writing, to the board to ensure transparency and allow the board to address the limitation appropriately.

An Internal Audit Activity Encounters a Scope Limitation from Senior