Per Standard 2310 - Identifying Information, auditors must evaluate the significance of variances and determine whether further investigation is required. Not every small discrepancy requires full investigation or reporting; the auditor should apply professional judgment to assess materiality, risk, and root cause.
Option B is correct because it balances efficiency with sufficiency. Options A, C, and D either understate or overstate the auditor's responsibility.

* A. Inform management and request that the plan be tested immediately:Testing without updating the plan could lead to irrelevant results given the significant changes to the systems.
* B. Update the recovery plan for management, as part of the review:The auditor's role is to assess and recommend, not to perform management's responsibilities.
* C. Evaluate the recovery plan and report weaknesses to management:Evaluation alone does not address the need for an update and testing of the outdated plan.
* D. Recommend that management and users update and test the recovery plan:Correct. This approach addresses the deficiencies in the plan and ensures alignment with current systems.
CIA Exam Syllabus Reference:
Domain II: Risk Management and Control - Disaster Recovery and Business Continuity Planning.

The chief audit executive (CAE) has the responsibility to provide assurance and insight on risk management processes. In a meeting with senior management to discuss significant risks, the CAE should focus on evaluating whether the risks accepted by senior management align with the organization's risk appetite and are within acceptable levels. The CAE should ensure that the risk management practices are adequate and that senior management is aware of any risks that might exceed the organization ' s tolerance levels. This approach is aligned with the role of internal audit in providing independent and objective evaluations.
Institute of Internal Auditors (IIA) Standards: Performance Standards 2120: Risk Management IIA Practice Guide: Assessing the Risk Management Process

Option C is correct. The auditor has already identified a difference between the established criteria -the organization ' s invoice requirements-and the actual condition -invoices missing required model and serial- number information. The next step is to evaluate the potential finding, including identifying its root cause, determining its potential effects, and assessing its significance. Standard 14.3 specifically requires internal auditors, when possible, to collaborate with management to identify the root cause of potential findings.
Option A prematurely escalates the issue to the CAE. Option B moves directly to corrective action before the finding has been fully evaluated. Option D may eventually be appropriate if additional testing is necessary, but the scenario already provides evidence of a potential finding requiring evaluation. Therefore, identifying why the condition differs from the established policy is the appropriate next action.

Given the situation where a system error prevents the engagement supervisor from adding her electronic signature to the workpapers, the most appropriate response to provide evidence of supervisory review is to print, sign, and date each workpaper after the review is complete, and then scan the document into the database as evidence of review. This ensures that there is a clear and traceable record of the supervisory review process, which is crucial for maintaining the integrity and reliability of the audit documentation.
* Printed Documentation: Printing the workpapers provides a physical copy that can be signed and dated, serving as a tangible record of the review.
* Signature and Date: The supervisor's signature and date indicate the completion of the review process and provide accountability.
* Scanning into Database: Scanning the signed documents back into the electronic workpaper database ensures that the evidence of review is stored in the system of record, maintaining consistency and accessibility.
This method upholds the standards of documentation and supervisory review, ensuring compliance with internal audit policies and procedures.
The Institute of Internal Auditors (IIA) Standards
IIA Practice Advisory: Documenting Information