From the Homework Exercises following Chapter 14 of your textbook, answer the questions found in Discussion Questions #2 on page 14-33. Your answers and your repsonses to other students’ answers are to be posted by June 24, 2016.

Question: Must all observations identified by an internal audit team during an assurance engagement be acted upon by management ? Explain. What are the implications for the internal audit function if management fails to respond appropriately to an observation warranting corrective action ?