What should an IS audit management team do if an auditor discovers that systems were implemented by an associate?

When an auditor discovers that systems were implemented by an associate, the appropriate action for the IS audit management team is to disclose the issue to the client. This step is essential because transparency is a key principle in the auditing process. By informing the client about the discovery, the audit team allows for a clear understanding of potential conflicts of interest and ensures that the integrity of the audit process is maintained.

Disclosing the issue also provides the client with the opportunity to assess the situation and ensure that proper oversight and accountability are established regarding the systems in question. This action helps foster trust and establishes a professional relationship between the auditor and the client, reinforcing the ethical standards expected in an audit engagement.

The other options would not adequately address the ethical implications of the auditor's relationship with the systems being audited or would ultimately compromise the audit's integrity or effectiveness. For example, removing the auditor or canceling the engagement doesn't resolve the fundamental issue of independence, and simply restoring independence without disclosure could lead to ethical concerns or unaddressed risks in the audit.