In which of the following circumstances does the internal auditor potentially lack objectivity?
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A revenue accounting employee assists an internal auditor in verifying the physical inventory of widgets. |
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An internal auditor discusses a significant issue with the Division Manager to whom the auditee reports prior to drafting the audit report. |
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An Accounts Payable supervisor performs a review of internal controls over the Accounts Payable function, three weeks after transferring to the internal audit department. |
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An internal auditor recommends standards of control and performance measures for a contract with an service organization for the processing of workers compensation claims |
(Q) In which of the following circumstances does the internal auditor potentially lack objectivity?
(Ans) Option : (C) - An Accounts Payable supervisor performs a review of internal controls over the Accounts Payable function, three weeks after transferring to the internal audit department.
The IIA Standards say that persons transferred to the internal auditing department should not be assigned to audit those activities they previously performed until a reasonable period of time has elapsed. The IIA's Standards require internal auditors to exercise due professional care while conducting assurance engagements. Therefore an Accounts payable supervisor should not be assigned to audit the activities that comes under his previously performed works.
In which of the following circumstances does the internal auditor potentially lack objectivity? A revenue accounting...
1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...
Operations Brony’s Bikes was incorporated more than 30 years ago to manufacture ten-speed touring bikes. An exercise bike and mountain bikes later added to the product line. Currently, the company manufactures the following products: Grand Prix: Ten-speed touring bike Phoenix: Deluxe eighteen-speed racing bike Pike’s Peak: Twelve-speed mountain bike Himalaya: Eighteen-speed deluxe mountain bike Waistliner: Stationary exercise bike All of these products are manufactured in a single facility, which is located in eastern Texas. Derailleurs (front and rear) comprise a...