Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation. What should the internal audit activity do?
A) Review the effectiveness of current policies and procedures but avoid making control recommendations due to impaired objectivity.
B) Perform the engagement and make appropriate recommendations for policies and procedures.
C) Turn down the engagement because recommending controls would impair future objectivity regarding this client.
D) Turn down the engagement because an operational audit should not review policies and procedures.

Question

Quizplus · Accepted Answer

The internal audit activity should perform the engagement and make appropriate recommendations for policies and procedures. Internal auditors can provide recommendations to improve controls while maintaining objectivity.

Line Management of a Manufacturing Operation Requests an Operational Audit