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Question 180 - IIA-CIA-Part2 discussion

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As part of the preliminary survey, an internal auditor sent an internal control questionnaire to the accounts payable function Based on the questionnaire responses, the auditor determines that there is no established procedure for adding and approving new vendors. What would the auditor do next?

A.
Determine that this situation is acceptable and focus on more significant issues
Answers
A.
Determine that this situation is acceptable and focus on more significant issues
B.
Document the issue m the draft audit report
Answers
B.
Document the issue m the draft audit report
C.
Document the observation for further follow up when testing the operating effectiveness of controls
Answers
C.
Document the observation for further follow up when testing the operating effectiveness of controls
D.
Interview the personnel associated with this observation.
Answers
D.
Interview the personnel associated with this observation.
Suggested answer: D

Explanation:

When an internal auditor identifies a potential control deficiency based on a preliminary survey, such as the lack of established procedures for adding and approving new vendors, the next appropriate step is to gather more detailed information. Interviewing personnel involved in the accounts payable function allows the auditor to understand the context, confirm the accuracy of the questionnaire responses, and gain insights into the potential risks and impacts associated with the observed deficiency. This step is crucial before documenting the issue or planning further audit procedures to ensure the information is accurate and complete.

Reference: The IIA's International Standards for the Professional Practice of Internal Auditing, Standard 2201 - Planning Considerations.

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asked 18/09/2024
Jorge Andres Gutierrez
30 questions
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