According to the International Professional Practices Framework, the internal audit activity’s decision to defer follow-up of recommendations and management’s corrective actions until the next scheduled engagement for the area is justified when:
A. The reported findings or recommendations are significant enough to require immediate action by management.
B. The action taken by management to address the recommendation is sufficient when weighed against the importance of the finding.
C. Management has adequately understood and appropriately accepted the risk of not taking action to implement the recommendation.
D. The significance of the finding or recommendation will allow auditors to perform monitoring by receiving periodic updates from management on corrective actions taken.
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