Question

1. How would you react in the following situations?

         a. You discover an internal control weakness in the company you are auditing.

         b. You notice your co-worker has recently been coming to work in a new car and wearing more expensive clothes and jewelry.

         c. You are the assistant controller and you notice a control weakness that would allow you to embezzle funds from the company.

Answer 1

(a) an oxganisation Answeg page-01 If discovered internal control weakness as auditor he should immediately seport incident to the management when someone' discovers internal werkness in the company also explain them why he finds the system weat and how it can be strengthened. chornging the hierachy and structure is possible to eradicate internal control weakness (b) When the coworker is coming on such ocassion in a new car the attention of the management should be altracted to the incident. so they able to track the resposibility areas of the cocooker and try to search for any fraudulent activities. (c) Being the assistant conkollen; ; responsibility to report the incident to the management explaining why he find's system weat control of it → Generally, this strengthens the organ:- -sation. controller view of the system rettifice the system, and denies any espliftment. are as the