Which of the following best describes the auditor's responsibility upon finding a significant issue?

The auditor's responsibility upon discovering a significant issue is to analyze and report it appropriately. This reflects the core tenets of audit standards and ethical practices, which mandate that auditors exercise professional skepticism and due diligence in their work. When a significant issue is identified, it indicates a potential risk or control failure that could materially affect the organization.

By analyzing the issue, the auditor assesses its impact, origins, and implications on the overall audit objectives. This thorough analysis ensures that any findings are well-founded and supported by evidence. Reporting the issue appropriately is crucial—this includes communicating it to the relevant stakeholders, such as management and possibly the board of directors, depending on the severity and nature of the issue. This process not only facilitates corrective actions to be taken but also supports transparency and accountability within the organization.

In contrast, ignoring the issue, notifying only the audit team, or resolving the issue independently would undermine the integrity of the audit process. Each of these actions fails to acknowledge the auditor's duty to ensure that significant issues are adequately addressed and documented, potentially leaving the organization vulnerable to risks and exacerbating the problem.