In this scenario, the most appropriate action for the internal auditor is to verify that the risk highlighted by the previous audit has indeed been addressed by the new IT system. This involves a detailed examination of the system documentation and possibly testing the controls within the new system. Once the auditor confirms that the new system adequately addresses the identified risk, they should report this finding to senior management and close the issue.
This approach ensures that the internal audit activity adheres to the IIA Standards regarding follow-up on audit findings, which requires auditors to ensure that agreed-upon actions have been implemented effectively.
IIA Reference:
IIA Standard 2500: Monitoring Progress mandates that the chief audit executive must establish and maintain a system to monitor the disposition of results communicated to management. This includes ensuring that the risks identified are appropriately addressed.
The Practice Advisory 2500.A1-1: Follow-up Process advises that follow-up is a critical part of the audit process, and it is essential to confirm that management actions address the risks identified during the audit.
Given these considerations, the correct answer is A. The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.