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Question 341 - IIA-CIA-Part2 discussion

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Which of the following audit steps would an internal auditor perform when reviewing cash disbursements to satisfy IIA guidance on due professional care?

A.
The calculated statistical sample size is 50 however the internal auditor believes errors exist so he decides to increase the sample size to 80
Answers
A.
The calculated statistical sample size is 50 however the internal auditor believes errors exist so he decides to increase the sample size to 80
B.
The internal auditor traces serial numbers of computer equipment listed on an invoice to the fixed asset inventory
Answers
B.
The internal auditor traces serial numbers of computer equipment listed on an invoice to the fixed asset inventory
C.
The internal auditor reviews the accounts payable manager's petty cash fund and vouchers
Answers
C.
The internal auditor reviews the accounts payable manager's petty cash fund and vouchers
D.
The internal auditor reviews the related invoice purchase order and receiving report for each sample selection
Answers
D.
The internal auditor reviews the related invoice purchase order and receiving report for each sample selection
Suggested answer: D

Explanation:

According to IIA guidance on due professional care, internal auditors should perform thorough and adequate steps to verify the accuracy and legitimacy of transactions. When reviewing cash disbursements, it is essential to check the three-way match among the invoice, purchase order, and receiving report. This ensures that the payment is valid, authorized, and that the goods or services were actually received as ordered. This step is crucial in preventing and detecting errors and fraud, thereby ensuring that the audit findings are reliable and accurate.

Reference: IIA Standard 1220: Due Professional Care IIA Practice Guide: Auditing Accounts Payable and Disbursements

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asked 18/09/2024
Sanaa CHOKIRI
45 questions
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