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QucotioIT The chief audit executive (CAE) of an organizations internal 20 audit activity should have the authority to do whi

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Answer #1

b. II and III only

Explanation:

I. Altering the audit plan in response to scope limitation is required to be presented to senior management and get their approval as it will amount to change in the engagement terms of the audit function.

II. Implementation of audit plan is to be done by the audit staff in consultation with the audit committee. Senior management approval is not required in this context.

III. CAE has to report to audit committee regarding the work progress and report to them. It is a regular part of their duties. Involvement of senior management is not required for that.

IV. Assigning am internal auditor to an assurance engagement in an area where the auditor was employed within the preceding year is expected to affect the independence of the auditor in conduct of his duties. Therefore it is important to bring the fact to the notice of the senior management to avoid conflict of interest and maintain independence.

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