IIA-CIA-PART2 · Question #261
An internal auditor is analyzing sates records and is concerned whether a transaction is recorded in the coned period. The accounting manager explains that the external auditor approved the records…
The correct answer is B. Consult account accounting principles, standards, and relevant guidelines in regard to timing of the. When concerned about whether a transaction is recorded in the correct period, the internal auditor should consult accounting principles, standards, and relevant guidelines to determine the appropriate timing of the entry. External auditor approval does not negate the internal…
Question
An internal auditor is analyzing sates records and is concerned whether a transaction is recorded in the coned period. The accounting manager explains that the external auditor approved the records and produces an email from the external audit team leader. How should tie internal auditor respond?
Options
- AAsk the external auditor to review the same transaction again as an independent third party
- BConsult account accounting principles, standards, and relevant guidelines in regard to timing of the
- CInterview the chief financial officer and obtain her opinion on how the transactions should be
- DCompare the recording of this transaction to now similar ones were executed last year
How the community answered
(26 responses)- A8% (2)
- B77% (20)
- C12% (3)
- D4% (1)
Explanation
When concerned about whether a transaction is recorded in the correct period, the internal auditor should consult accounting principles, standards, and relevant guidelines to determine the appropriate timing of the entry. External auditor approval does not negate the internal auditor's responsibility to ensure that the transaction complies with established accounting standards and principles. Consulting the relevant guidelines provides an objective basis for assessing the accuracy of the transaction's recording.
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