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An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?
A. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.
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C. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
D. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.
Answer: A
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