IIA-CIA-PART2 · Question #213
An internal auditor wanted to determine whether the organization's 200 employees are charging their work hours accurately to the correct project. The internal auditor selected a sample of 30…
The correct answer is D. The organization generally ensured that employee hours charged to each project were accurate. In internal auditing, when assessing the accuracy and completeness of employee time reporting, auditors often use sampling to determine the overall compliance of the process. In this scenario, the internal auditor sampled 30 employee time reports and found 5 incorrect and 4…
Question
An internal auditor wanted to determine whether the organization's 200 employees are charging their work hours accurately to the correct project. The internal auditor selected a sample of 30 employee time reports for testing. Based on the testing, the internal auditor determined the following:
- 5 Time reports were incorrect.
- 21 Time reports were correct.
- 4 Time reports were not supported.
Options
- AThe organization has significant flaws in its reporting of employee time, which could lead to the
- BThe organization needs to ensure that all reporting of employee time is accurate and complete for
- CThe organization overstated project costs due to inaccurate and incomplete reporting of employee
- DThe organization generally ensured that employee hours charged to each project were accurate
How the community answered
(28 responses)- A11% (3)
- B21% (6)
- C4% (1)
- D64% (18)
Explanation
In internal auditing, when assessing the accuracy and completeness of employee time reporting, auditors often use sampling to determine the overall compliance of the process. In this scenario, the internal auditor sampled 30 employee time reports and found 5 incorrect and 4 unsupported reports. This indicates that a majority (21 out of 30) were accurate, suggesting that the organization generally ensures accurate reporting. However, the presence of incorrect and unsupported reports indicates deficiencies that need to be addressed, but do not point to systemic fraud or abuse. Thus, option D accurately reflects the findings by acknowledging both the general accuracy and the instances of errors.
Topics
Community Discussion
No community discussion yet for this question.