An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if:I. In the opinion of the CAE, the level of residual risk assumed by senior management is too high.II. Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.III. The cost of modifying the sales system to include a preventive control is less than $100,000.
At the conclusion of an audit of an organization's treasury department, a report was issued to the treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a follow-up review was performed. The auditor should provide the report of follow-up findings to the:I. Treasurer.II. Chief financial officer.III. President.IV. Board.
The use of standard operating procedure questionnaires in audit fieldwork can be beneficial because.
A code of business conduct provides:
When internal auditors provide consulting services, the scope of the engagement is primarily determined by:
When conducting audit follow-up of a finding related to cash management routines, an internal auditor would expect to find that all of the following changes have occurred except:
