What should the auditor do?

As a result of an audit, a policy exception was identified that had been approved by the compliance officer. The auditor determined that the policy exception is a violation of a regulatory requirement.

What should the auditor do?
A . Advise the compliance officer on how to appropriately respond to policy exceptions.
B . Include the regulatory violation in the audit report and report it to the board of directors.
C . Consult with legal counsel to determine if the approval of the policy exception was acceptable.
D . Include the regulatory violation in the audit report and recommend the compliance officer be subject to disciplinary action by the board of directors.

View Answer

Answer: B