An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?
A.
Observe corrective measures.
B.
Seek a management assurance declaration.
C.
Follow up during the next scheduled audit.
D.
Conduct appropriate testing to verify management responses.
To ensure that recommendations for enhancing internal controls have been effectively implemented, the internal auditor should conduct appropriate testing to verify management responses. This involves re-performing procedures, reviewing documentation, and possibly observing operations to confirm that the corrective actions have been adequately executed and are effective. Simply seeking a management assurance declaration (Option B) or observing corrective measures (Option A) may not provide sufficient evidence of proper implementation. Following up during the next scheduled audit (Option C) may delay the verification process, potentially allowing risks to persist.References:
IIA Standard 2500: Monitoring Progress.
IIA Practice Guide on Follow-up Processes in Internal Auditing.
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