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What state does an audit engagement return to if it is rejected?

Fieldwork state

When an audit engagement is rejected, it typically returns to the Fieldwork state. This state signifies that the audit is still in the active process of being conducted, where auditors gather evidence and information. When an engagement is rejected, it often indicates that revisions or further work is necessary before moving forward with the audit, which is why it would return to the Fieldwork state for adjustments or completion.

In contrast, the Closed state is used when an engagement has been fully completed and no further action is required. The Scope state relates to defining the parameters and objectives of the engagement, not where it currently stands after being rejected. The Follow Up state is usually associated with reviewing actions taken after an audit, not the immediate action taken when an engagement is rejected. Thus, the logical progression after a rejection leads back to the Fieldwork state for necessary updates or corrections.

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Closed state

Scope state

Follow Up state

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