Halden Water Services' internal audit team uncovers, midway through an engagement, evidence that a manager has been circumventing procurement controls and exposing the organisation to continuing loss. The final engagement report is not due for another six weeks. What should the chief audit executive do to keep the communication timely?
- AWait until the final report is issued so the matter can be presented with full context and a documented management response.
- BCommunicate the matter promptly to senior management and the board so corrective action can be taken ahead of the final report. Correct
- CAdd the matter to the next quarterly summary sent to the finance director for consolidation with the period's other findings.
- DHold the finding until fieldwork closes and then compress the report timetable by shortening the management response period.
Why A is wrong: Bundling the matter into the final report feels tidy, but timeliness means communicating significant findings soon enough for action, and a six-week delay lets a known loss continue.
Why B is correct: Timely communication means issuing interim results when a finding is significant enough to warrant action before fieldwork closes, and routing it to management and the board preserves the reporting line and enables a fast response.
Why C is wrong: A quarterly roll-up to a single manager is neither timely nor directed to the right level, and it delays action on an issue that is already causing loss.
Why D is wrong: Squeezing the later timetable still leaves weeks of continuing loss untreated and trades a genuine interim communication for a rushed final one.