What course of action should the chief audit executive take if management decides to not take action on an agreed-upon recommendation?

The best course of action for the chief audit executive when management decides not to take action on an agreed-upon recommendation is to meet with senior management to further explore the matter. This approach allows for direct communication and dialogue, providing an opportunity to understand the reasons behind management's decision.

By engaging senior management, the chief audit executive can gather insights into any concerns or constraints that may have led to the inaction. This conversation may uncover misunderstandings about the recommendation's importance, potential resource issues, or differing priorities. It also demonstrates a collaborative spirit and encourages a culture of open communication within the organization.

This interaction can lead to a better understanding of the situation and possibly a revised approach to the recommendation that takes management's perspective into account, thereby facilitating future compliance or adjustments. Effective dialogue is crucial in internal auditing, as it helps maintain the relationship between auditors and management while ensuring that audit recommendations are properly considered.

In comparison, escalating the issue to the board or issuing a public report may disrupt relationships and create tension rather than fostering collaboration. Reassessing the findings and recommendations could be important in some contexts, but it doesn't address the immediate need to engage with management and resolve the matter collaboratively.