Which factors can necessitate modifications in an audit program?

Modifications in an audit program are often required in response to changing circumstances or conditions that can affect the integrity and effectiveness of the audit process. The correct choice, relating to conflict of interest situations, highlights a significant concern within audit practices.

When a conflict of interest arises, it can compromise the objectivity and impartiality of the audit. Auditors must be free from influences or relationships that could bias their judgment. If such a situation is identified, the audit program must be modified to ensure that the integrity of the audit is maintained. This might involve changing the auditing team, revising the scope of the audit, or addressing the conflict through additional oversight or oversight mechanisms.

While other factors like manager's requirements, audit efficiency, and changes from regulatory bodies can influence the layout or direction of an audit program, the presence of a conflict of interest is particularly critical as it directly impacts the credibility of the audit findings. Thus, addressing conflicts of interest is paramount to uphold the principles of transparency and trust in the audit process, necessitating a modification in the audit program to mitigate potential risks associated with biased outcomes.