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A healthcare organization's chief audit executive (CAE) noted that the organization's IT team relies heavily on a vendor. Therefore an IT vendor assessment review was added to the annual audit plan. During the review, the audit team discovered that the vendor had not been performing proper monitoring to ensure that the subcontractors it hired comply with the organization requirements. The organization's chief information officer (ClO) does not agree with the audit team's recommendation for the IT team to monitor the compliance level of vendor subcontractors. How should the audit team proceed to resolve this situation?
Correct Answer: C
When there is a disagreement between the audit team and management, and if the disagreement concerns a significant risk, the issue should be escalated to the audit committee. The audit committee has the authority to review and resolve such disputes. Escalating the issue ensures that the concern is addressed at the highest governance level, maintaining the integrity and effectiveness of the internal audit function. References: * The Institute of Internal Auditors (IIA) Standards * Internal Audit Governance and Escalation Procedures