reported to the manager of the systems development project, the manager decided to accept the risk because, in the manager's opinion, the risk was not significant. Six months after the implementation of the new system, the disbursements process was audited by another internal auditor who determined that the control weakness had impacted payment processing. The auditor reviewing the disbursements process should do which of the following? None of the choices. Report the control weakness to management and the audit committee Discuss the control weakness with the manager of the accounting system, but do not report the finding Disregard the control weakness because management previously decided to accept the risk Request that the manager of the systems development project fix the system
reported to the manager of the systems development project, the manager decided to accept the risk because, in the manager's opinion, the risk was not significant. Six months after the implementation of the new system, the disbursements process was audited by another internal auditor who determined that the control weakness had impacted payment processing. The auditor reviewing the disbursements process should do which of the following? None of the choices. Report the control weakness to management and the audit committee Discuss the control weakness with the manager of the accounting system, but do not report the finding Disregard the control weakness because management previously decided to accept the risk Request that the manager of the systems development project fix the system
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 37P
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Question
During a consulting engagement involving the development of a new accounts payable system, an internal auditor identified a control weakness. Although the weakness was reported to the manager of the systems development project, the manager decided to accept the risk because, in the manager's opinion, the risk was not significant. Six months after the implementation of the new system, the disbursements process was audited by another internal auditor who determined that the control weakness had impacted payment processing. The auditor reviewing the disbursements process should do which of the following?
None of the choices.
Report the control weakness to management and the audit committee
Discuss the control weakness with the manager of the accounting system, but do not report the finding
Disregard the control weakness because management previously decided to accept the risk
Request that the manager of the systems development project fix the system
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