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IIA-CIA-PART2 · Question #426

An internal auditor completed a test of 30 randomly selected accounts. For five of the accounts selected, the auditor was unable to find supporting documentation in the normal place of storage…

The correct answer is D. Contact management to determine whether the supporting documentation can be located. When an internal auditor is unable to find supporting documentation for selected accounts during a test, the appropriate next step is to contact management to determine if the documentation is stored elsewhere. This ensures that all potential sources of evidence are explored…

Conducting the Internal Audit Engagement

Question

An internal auditor completed a test of 30 randomly selected accounts. For five of the accounts selected, the auditor was unable to find supporting documentation in the normal place of storage. Which of the following next steps would be most appropriate for the internal auditor to take?

Options

  • AConclude that the test failed because at least 17 percent of the sample items were not supported.
  • BSelect five new accounts to replace the ones that were missing supporting documentation.
  • CExpand the sample size to 60 to determine whether the error rate remains the same.
  • DContact management to determine whether the supporting documentation can be located

How the community answered

(32 responses)
  • A
    9% (3)
  • B
    3% (1)
  • C
    16% (5)
  • D
    72% (23)

Explanation

When an internal auditor is unable to find supporting documentation for selected accounts during a test, the appropriate next step is to contact management to determine if the documentation is stored elsewhere. This ensures that all potential sources of evidence are explored before drawing any conclusions.

Topics

#audit sampling#missing documentation#sample exceptions#audit evidence

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