What is the typical sequence for resolving disputes under BAP engagement terms?

• A. Litigation
• B. Do nothing
• C. Seek external audit
• D. Escalation to governance, then mediation or arbitration per contract

Answer: (D)

Dispute resolution in BAP engagement terms follows a staged, governance-driven path, then a defined ADR route. First, raise the issue with the appropriate level of governance or oversight within the engagement so those with authority can attempt a resolution. If it remains unresolved, move to mediation or arbitration as specified by the contract. This sequence keeps disputes managed efficiently, preserves relationships, and usually results in a binding decision without the costs and acrimony of court litigation. Going straight to litigation bypasses the intended, lower-cost path and is more adversarial. Doing nothing doesn’t resolve the issue, and seeking an external audit isn’t a dispute-resolution method.