D, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry Explanation:
According to internal auditing standards and best practices, the distribution of audit reports, especially those involving third-party service providers, must be handled with caution. The CAE should consult with legal counsel and the chief compliance officer before distributing the audit report to ensure that the organization's legal and compliance obligations are met. This ensures that any sensitive information is protected and that the distribution is aligned with the organization's policies and contractual agreements with the service provider.
Reference:
The Institute of Internal Auditors (IIA) Standards
Internal Audit Guidelines on Confidentiality and Distribution of Audit Reports