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Which course of action should the auditor take?

While auditing an organization’s credit approval process, an internal auditor learns that the organization has made a large loan to another auditor’s relative.

Which course of action should the auditor take?
A . Proceed with the audit engagement, but do not include the relative’s information.
B . Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.
C . Disclose in the engagement final communication that the relative is a customer.
D . Immediately withdraw from the audit engagement.

Answer: B

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