Which of the following audit steps would an internal auditor perform when reviewing cash disbursements to satisfy IIA guidance on due professional care?

Question

Options

• AThe calculated statistical sample size is 50 however the internal auditor believes errors exist so he
• BThe internal auditor traces serial numbers of computer equipment listed on an invoice to the fixed
• CThe internal auditor reviews the accounts payable manager's petty cash fund and vouchers
• DThe internal auditor reviews the related invoice purchase order and receiving report for each

• A
  4% (1)
• B
  16% (4)
• C
  4% (1)
• D
  76% (19)

Explanation

According to IIA guidance on due professional care, internal auditors should perform thorough and adequate steps to verify the accuracy and legitimacy of transactions. When reviewing cash disbursements, it is essential to check the three-way match among the invoice, purchase order, and receiving report. This ensures that the payment is valid, authorized, and that the goods or services were actually received as ordered. This step is crucial in preventing and detecting errors and fraud, thereby ensuring that the audit findings are reliable and accurate.

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