Which procedure provides the GREATEST assurance that corrective action to an audit report has been taken?
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A. B. C. D.A.
The correct answer is D. Requesting a written management reply to the audit report, identifying corrective action for each deficiency.
Explanation: Corrective action is the process of addressing the issues or deficiencies identified during an audit. Once an audit report has been issued, it is important to ensure that the corrective action has been taken effectively to address the identified issues.
Option A: Performing subsequent audit tests to verify resolution of the deficiencies may provide some assurance, but it is not the greatest assurance as it does not necessarily indicate that the corrective action has been taken. It only confirms whether the deficiencies still exist or not.
Option B: Inquiring about the current status of the recommendation is also not the greatest assurance as it only provides information about the current status and not whether the corrective action has been taken or not.
Option C: Reporting to the audit committee or the board of directors concerning specific action taken or lack thereof is a good practice, but it is not the greatest assurance as it does not confirm whether the corrective action has been taken or not. It only informs the governing body about the actions taken by management.
Option D: Requesting a written management reply to the audit report, identifying corrective action for each deficiency is the best practice to ensure that the corrective action has been taken effectively. This option provides written documentation from management that indicates that the corrective action has been taken and also provides specific details about the action taken for each deficiency.
Therefore, option D is the correct answer as it provides the greatest assurance that corrective action to an audit report has been taken.