Question

Upon obtaining factual documentation of unethical business conduct by the vice president to whom the chief audit executive (CAE) reports, the CAE should

A. Report the facts to the chief executive officer and the audit committee.
B. Confront the vice president with the facts before proceeding.
C. Conduct an investigation to determine the extent of the vice president's involvement in the unethical acts.
D. Schedule an audit of the business function involved.

Answer 1

The CAE should report the facts to the CEO and audit committee when faced with unethical conduct by the VP.

Step-by-step explanation:

When faced with factual documentation of unethical business conduct by the vice president to whom the chief audit executive (CAE) reports, the CAE should report the facts to the chief executive officer and the audit committee.

This is the appropriate course of action to ensure that the misconduct is addressed at the highest level of authority within the organization. The CAE should not confront the vice president directly, as this may jeopardize the investigation and potentially hinder a fair resolution to the situation.