Less Stringent Industry Standards vs. Local Regulatory Standards: Auditor's Approach

Guidance for Handling Discrepancy Between Industry Standards and Local Regulatory Standards

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Question

An IS auditor is reviewing standards and compliance requirements related to an upcoming systems audit.

The auditor notes that the industry standards are less stringent than local regulatory standards.

How should the auditor proceed?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C.

When industry standards and local regulatory standards differ, an IS auditor should consider both in determining the appropriate audit scope. The best approach would be to audit to the standards with the highest requirements. This ensures that the organization is meeting the most stringent requirements and avoiding potential legal or regulatory issues.

Option A is the correct answer as it aligns with the best practice approach for handling differing standards. The IS auditor should review the requirements of both sets of standards and use the more stringent requirements as the basis for the audit. This ensures that the audit provides a comprehensive assessment of the organization's compliance with regulatory and industry requirements.

Option B is not a good approach as it may not address all of the necessary compliance requirements. While industry standards may provide valuable guidance, they may not address all of the regulatory requirements that an organization must comply with. Auditing exclusively to industry standards could result in missing key areas of non-compliance.

Option C may be appropriate in some cases, but it is not the best approach in this scenario. Coordinating with regulatory officers can provide valuable insight into the compliance requirements that an organization must meet, but it may not be feasible or necessary in all cases. Additionally, relying solely on regulatory officers may result in a less comprehensive audit.

Option D is not a good approach as it does not address the differing compliance requirements. Auditing to the policies and procedures of the organization may ensure that the organization is following its own internal guidelines, but it may not address all of the regulatory and industry requirements that the organization must comply with.

In summary, the best approach when industry standards are less stringent than local regulatory standards is to audit to the standards with the highest requirements.