IIA-CIA-PART2 · Question #249
An internal auditor examined a nostatistical sample of open accounts receivable balances and discovered that 10 out of 60 exceeded the approved unseated credit limit threshold defined by the…
The correct answer is B. Seventeen percent of customers' open balances in the sample exceed their approved unsecured. When documenting findings from a nonstatistical sample, internal auditors should record the factual observations and quantify the results where possible. In this case, the auditor should document that 17% of the sampled accounts receivable balances exceeded the approved…
Question
An internal auditor examined a nostatistical sample of open accounts receivable balances and discovered that 10 out of 60 exceeded the approved unseated credit limit threshold defined by the organization's policy What should the auditor document in the workpapers?
Options
- ACredit limit over drafts are not monitored in accordance with the organizations policy
- BSeventeen percent of customers' open balances in the sample exceed their approved unsecured
- CThe threshold for credit limits defined by the organization's policy is not adequate
- DManagement should perform monthly monitoring of open customer balances
How the community answered
(39 responses)- A13% (5)
- B79% (31)
- C5% (2)
- D3% (1)
Explanation
When documenting findings from a nonstatistical sample, internal auditors should record the factual observations and quantify the results where possible. In this case, the auditor should document that 17% of the sampled accounts receivable balances exceeded the approved unsecured credit limit. This provides a clear, quantifiable basis for the finding, which is critical for accurate reporting and for management to understand the scope of the issue. Documenting this percentage also supports the auditor's conclusions and recommendations for corrective actions.
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