What must CAEs document when resources are insufficient?

• A. The impact on audit coverage.
• B. The impact on external stakeholders.
• C. The salary budgets for staff.
• D. The schedule of external audits.

Answer: (A)

When resources are insufficient, the key thing to document is how this affects audit coverage—the scope, timing, and areas that may need to be reduced, deferred, or narrowed. This transparency helps the board and senior management understand potential risk gaps and provides a basis for re-prioritizing the audit plan, reallocating resources, or adjusting timelines. It also creates a record of deviations from the plan and the rationale behind those decisions, which supports accountability and future planning. While resource limits can influence interactions with external stakeholders or scheduling of external audits, the central documentation focus is the impact on coverage; salary budgets are not the primary concern in this context.