You Have Taken Over as Lead Engagement Partner on a Major

You have taken over as lead engagement partner on a major client audit. A member of the audit team comes to you and discloses that in the previous year many of the audit tests weren't actually carried out but were recorded as having been done by the then audit manager. That person has subsequently left the firm and is now the financial controller of the client. What actions might you take in respect of what you have been told?

A) None because it is an unsupported allegation and nothing bad seems to have happened in the meantime.
B) Change the whole audit team to make sure no one who worked on last year's audit is the current year's audit and perform the audit as in previous years.
C) Report the allegations to the Ethics Partner and wait and see what they recommend otherwise carry on with the audit as in previous years.
D) Change the audit procedures to be carried out this year and pay special attention to those areas where audit work was allegedly not carried out last year.