Which of the following best describes the audit process after detecting an error?

The audit process following the detection of an error emphasizes the importance of providing a detailed rationale and assessing the financial impact. This action is crucial because it not only documents the nature of the error but also demonstrates the auditor's understanding of its implications for the organization. By detailing the rationale, the auditor clarifies why the error occurred, which can be instrumental for implementing corrective measures. Furthermore, understanding the financial impact helps stakeholders appreciate the severity of the discrepancy and prioritize actions to mitigate potential losses.

Documenting this information contributes to transparency in the auditing process and helps inform strategic decisions moving forward. It also supports compliance and improves the overall quality of the auditing process, ensuring that similar errors can be prevented in the future.