IIA-CIA-PART2 · Question #142
An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with…
The correct answer is C. The organization had weaknesses in its review process which allowed questionable transactions. The most appropriate conclusion for the auditor to include in the audit report is that the organization had weaknesses in its review process which allowed questionable transactions with some vendors. This conclusion directly addresses the identified issue of questionable vendor…
Question
An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with questionable vendor documentation. Which of the following is the most appropriate conclusion for the auditor to include in the audit report?
Options
- AThe organization incurred excessive cost overruns that resulted in significant financial and legal
- BThe organization experienced a potential conflict of interest
- CThe organization had weaknesses in its review process which allowed questionable transactions
- DThe organization allowed the project to launch without assurance that all transactions were
How the community answered
(54 responses)- A2% (1)
- B6% (3)
- C85% (46)
- D7% (4)
Explanation
The most appropriate conclusion for the auditor to include in the audit report is that the organization had weaknesses in its review process which allowed questionable transactions with some vendors. This conclusion directly addresses the identified issue of questionable vendor documentation and implies that there are control deficiencies in the review process that need to be addressed to prevent such occurrences in the future.
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