The chief audit executive at Camberwell Logistics observes that competitors are rapidly shifting to third-party electric-vehicle fleets and that a related industry risk is emerging. None of this is yet reflected in the audit universe. What is the most appropriate next step in the planning process?
- AWait for senior management to formally request coverage of the fleet strategy before taking any planning action.
- BAnalyse the emerging trend, update the audit universe with any newly relevant auditable areas, and weight the related risk in the assessment supporting the plan. Correct
- CAdd an electric-vehicle fleet engagement to the current year's plan without first assessing its relative risk.
- DRecord the trend but exclude it from planning because it reflects competitor activity rather than the organisation's own operations.
Why A is wrong: Management requests are one input, but relying on them to trigger scanning cedes the chief audit executive's own duty to monitor emerging trends and keep the audit universe current.
Why B is correct: Emerging market and industry trends are a named source of engagements; analysing the trend, refreshing the audit universe, and reflecting the risk in the assessment is the proactive, evidence-based response.
Why C is wrong: Acting quickly seems responsive, but inserting an engagement without weighing its risk against others can displace higher-priority work and skips the risk-based method.
Why D is wrong: The trend does originate with competitors, but industry shifts change the organisation's own risk profile, so excluding it from planning ignores a legitimate emerging source of engagements.