Question

When conducting a consulting engagement to improve the efficiency of a production process, the internal audit team is faced with a scope limitation because several months of the production data has been lost or is incomplete. Faced with this scope limitation, what should the CAE do?

1) Proceed with the engagement using the available data
2) Delay the engagement until the missing data is obtained
3) Modify the scope of the engagement to focus on the available data
4) Cancel the engagement due to the scope limitation

Answer 1

When faced with incomplete or lost production data during a consulting engagement to improve efficiency, the CAE should modify the scope of the engagement to focus on the available data.

Step-by-step explanation:

When faced with a scope limitation due to incomplete or lost production data during a consulting engagement to improve efficiency of a production process, the Chief Audit Executive (CAE) should consider modifying the scope of the engagement to focus on the available data.

This allows the audit team to proceed with their analysis without delaying the engagement or canceling it entirely. By narrowing down the scope, the team can still identify areas of improvement and provide valuable recommendations based on the available data.