To promote a positive image within an organization, a chief audit executive (CAE) adjusted the audit plan to focus on assurance engagements that highlighted potential costs to be saved. Negative observations were to be omitted from engagement final communications. Which action taken by the CAE would be considered a violation of the Standards?
A) The focus of the audit function was changed without modifying the audit charter or notifying the audit committee. II. Negative observations were omitted from the engagement final communications. III. Cost savings and recommendations were highlighted in the engagement final communications.
B) II only
C) I and II only
D) I and III only
E) I, II, and III.

Question

Quizplus · Accepted Answer

Omitting negative observations from the engagement final communications violates the Standards, as it compromises the integrity and completeness of the audit report.

To Promote a Positive Image Within an Organization, a Chief