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Question 731 - IIA-CIA-Part1 discussion

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During a payroll audit, a staff internal auditor suspects that signatures on some of the documents being sampled for examination are not authentic. Which of the following actions should the auditor take before proceeding with the examination?

A.

Suggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.

Answers
A.

Suggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.

B.

Keep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.

Answers
B.

Keep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.

C.

Discuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.

Answers
C.

Discuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.

D.

Review the suspicious documents with the chief audit executive and seek advice concerning further examination.

Answers
D.

Review the suspicious documents with the chief audit executive and seek advice concerning further examination.

Suggested answer: D

Explanation:

The best course of action is for the internal auditor to consult with the chief audit executive (CAE) regarding the suspicious documents. This step aligns with IIA standards, which advise consulting senior audit leaders in cases of potential fraud to ensure proper investigation and avoid alerting those who might be involved.

asked 03/11/2024
John Doe
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