Follow-Up Audit Recommendations and Budget Restrictions

D.

When an IS auditor conducts a follow-up audit and learns that previously funded recommendations have not been implemented due to recent budget restrictions, the auditor should take the following steps:

Option A: Reporting to the audit committee that the recommendations are still open is a valid response. This is because the audit committee has oversight responsibility for ensuring that recommendations are implemented in a timely manner. By reporting that the recommendations are still open, the audit committee can take appropriate action to ensure that they are implemented.

Option B: Reporting the matter to the chief financial officer (CFO) and recommending funding be reinstated is also a valid response. The CFO has authority over budgetary matters and can provide the necessary funding to implement the recommendations. However, it is important to note that this option may not be feasible if the budget restrictions are due to factors outside the control of the organization.

Option C: Closing the audit recommendations in the tracking register is not appropriate in this situation. Even though the recommendations have not been implemented, they are still valid and need to be addressed. Closing them prematurely would not reflect the true status of the recommendations.

Option D: Starting an audit of the project funding allocation process is also not appropriate in this situation. While it is important to ensure that project funding is allocated appropriately, it is not directly related to the issue at hand, which is the implementation of previously funded recommendations.

In conclusion, the best course of action in this situation is either to report to the audit committee that the recommendations are still open or to report the matter to the CFO and recommend funding be reinstated, depending on the circumstances.