Who should make the final decision on including a material finding in an audit report?

The final decision on including a material finding in an audit report should rest with the IS auditor. The IS auditor possesses the expertise and understanding necessary to assess the significance of findings in relation to the audit objectives, scope, and standards set forth by professional organizations. This professional judgment is crucial in determining what constitutes a material finding and how it should be communicated to stakeholders.

The role of the IS auditor involves evaluating risks, compliance, and operational effectiveness, and the inclusion of findings is grounded in evidence gathered throughout the audit process. By making the final decision, the IS auditor ensures that the report accurately reflects the audit findings and provides a constructive critique that can lead to improvements in the organization’s control environment.

In contrast, other roles such as the audit committee, the auditee's manager, and the chief executive officer all have different responsibilities and perspectives that may influence the audit's findings but do not possess the specialized expertise required to make the final determination on what is material. The audit committee oversees the audit process and may provide input, but they rely on the auditor's judgment to make informed decisions. The auditee's manager may focus on operational concerns and may not see the broader implications of findings, while the chief executive officer is more focused on organizational strategy and priorities.