Management Disagrees with Audit Finding - Next Course of Action

Management Disagrees with Audit Finding

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Question

Management disagrees with a finding in a draft audit report and provides supporting documentation.

Which of the following should be the IS auditor's NEXT course of action?

Answers

Explanations

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A. B. C. D.

B.

The correct answer is B. Evaluate the supporting documentation.

Explanation:

As an IS auditor, the first step after receiving supporting documentation from management to back up their disagreement with a finding in the draft audit report would be to carefully evaluate the documentation provided to determine its relevance, reliability, and sufficiency. The IS auditor should also verify that the evidence provided is consistent with the audit criteria used to assess the control or process in question. The purpose of this step is to ensure that the supporting documentation provided by management is valid and reliable, and that it effectively addresses the findings in the draft audit report.

Once the IS auditor has evaluated the supporting documentation, he or she should then review the finding in question to determine if it should be revised or eliminated based on the new evidence presented. If the supporting documentation is found to be valid and reliable, and it provides a reasonable explanation for the finding, the IS auditor should revise the draft audit report accordingly.

However, if the supporting documentation is found to be insufficient or unreliable, or if it does not adequately address the findings in the draft audit report, the IS auditor may need to discuss the matter further with management to obtain additional information or evidence. In some cases, it may also be appropriate to escalate the issue to senior management if there is a significant disagreement that cannot be resolved through normal channels.

In any case, the IS auditor should never finalize the draft audit report without thoroughly evaluating any supporting documentation provided by management, as this could compromise the integrity and accuracy of the audit process. The auditor should document any changes made to the audit report based on the supporting documentation provided by management and ensure that the final report accurately reflects the results of the audit.