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Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response from the chief audit executive?
Correct Answer: B
When significant control issues are identified during a consulting engagement, it is the responsibility of the chief audit executive to ensure that these issues are communicated to senior management and the board. This ensures that the organization is aware of the risks and can take corrective action. Consulting engagements should not overshadow the priority of addressing critical control issues that may affect the organization's risk profile. Reference: "International Standards for the Professional Practice of Internal Auditing" (IIA Standards) "Internal Auditing: Assurance & Advisory Services" (The Institute of Internal Auditors)