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Based on the information in scenario C, classify the information (1-8) according to the elements of an audit finding (criteria, condition,cause, effect and recommendations)

Based on the information in scenario C, classify the information (1-8) according to the elements of an audit finding (criteria, condition,cause, effect and recommendations)

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 12MC: The external auditor of a company has certain requirements due to Sarbanes-Oxley. Which of the...
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Based on the information in scenario C, classify the information (1-8) according to the elements of an audit finding (criteria, condition,cause, effect and recommendations)

The internal audit manager is planning to develop a training manual for the internal audit graduate programme for the 2020/2021 financial year. The manager gathers the following unrelated audit findings scenarios from previous internal audit reports to serve as examples: 1) The incorrect allocation of equipment in the asset register occurred because the asset manager did not exercise proper control over the receipt of the equipment. 2) No procedures were in place for monitoring the activities of employees. 3) The required ledger control accounts should be created and updated to ensure control over funds. 4) The practice of keeping duplicate records also contributed to the unnecessarily high labour and costs. 5) According to the policies of Plastic Designs Ltd, personal computers should be depreciated over three years. 6) During the interview with operations manager, we noted that only a verbal agreement was established between the operational manager and the service provider for waste removal. 7) Consequently, the administrative costs of the department were overstated by an amount of R300 000. 8) Management should take all possible measures to ensure that all major projects are approved according to delegation of authority.
Transcribed Image Text:The internal audit manager is planning to develop a training manual for the internal audit graduate programme for the 2020/2021 financial year. The manager gathers the following unrelated audit findings scenarios from previous internal audit reports to serve as examples: 1) The incorrect allocation of equipment in the asset register occurred because the asset manager did not exercise proper control over the receipt of the equipment. 2) No procedures were in place for monitoring the activities of employees. 3) The required ledger control accounts should be created and updated to ensure control over funds. 4) The practice of keeping duplicate records also contributed to the unnecessarily high labour and costs. 5) According to the policies of Plastic Designs Ltd, personal computers should be depreciated over three years. 6) During the interview with operations manager, we noted that only a verbal agreement was established between the operational manager and the service provider for waste removal. 7) Consequently, the administrative costs of the department were overstated by an amount of R300 000. 8) Management should take all possible measures to ensure that all major projects are approved according to delegation of authority.
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