IIA
IIA-CIA-PART1 · Question #3
During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire…
The correct answer is C. Ask the clerk to provide a list of any suspicious new employee names on the payroll. See the full explanation below for the reasoning.
Question
During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud. To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?
Options
- AIncrease the sample size to be tested, ensuring a thorough review of the payroll records.
- BAdvise the chief audit executive of the clerk's assertion, despite the lack of supporting evidence.
- CAsk the clerk to provide a list of any suspicious new employee names on the payroll.
- DInvestigate the matter further to understand precisely how many payroll records were affected.
How the community answered
(32 responses)- A3% (1)
- B16% (5)
- C72% (23)
- D9% (3)
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