What state does an audit engagement enter when it is approved but has remaining issues?

When an audit engagement is approved but still has unresolved issues, it enters the Follow Up state. This state reflects the ongoing management of the audit process where the audit team monitors or addresses outstanding items that require resolution. It serves as an important phase in the audit lifecycle to ensure that identified issues are adequately tracked and remediated before final closure.

This Follow Up state is crucial as it signifies that the audit is not entirely concluded until all issues are resolved. It allows for communication between auditors and stakeholders regarding the status of the audit findings and the necessary actions required to address any lingering concerns. This ensures a comprehensive approach to risk management, as unresolved issues can pose continued risk if not adequately addressed.