The CAE for Sargon Products reports administratively to the CFO and functionally to the audit committee. The scope of the internal audit function assurance services includes financial, operational, and compliance engagements. Is the internal auditors’ objectivity regarding accounting-related matters impaired in each of the situations described below? Briefly explain your answer. a. The internal auditors are frequently asked to make accounting entries for complex transactions that the company’s accountants do not have the expertise to handle. b. A staff accountant reconciles the company’s monthly bank statements. An internal auditor reviews the bank reconciliations to make sure they are completed properly.
The CAE for Sargon Products reports administratively to the CFO and functionally to the audit committee. The scope of the internal audit function assurance services includes financial, operational, and compliance engagements. Is the internal auditors’ objectivity regarding accounting-related matters impaired in each of the situations described below? Briefly explain your answer. a. The internal auditors are frequently asked to make accounting entries for complex transactions that the company’s accountants do not have the expertise to handle. b. A staff accountant reconciles the company’s monthly bank statements. An internal auditor reviews the bank reconciliations to make sure they are completed properly.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Completing A Quality Audit
Section: Chapter Questions
Problem 35RQSC
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The CAE for Sargon Products reports administratively to the CFO and functionally to the audit committee. The scope of the internal audit function assurance services includes financial, operational, and compliance engagements. Is the internal auditors’ objectivity regarding accounting-related matters impaired in each of the situations described below? Briefly explain your answer.
a. The internal auditors are frequently asked to make accounting entries for complex transactions that the company’s accountants do not have the expertise to handle.
b. A staff accountant reconciles the company’s monthly bank statements. An internal auditor reviews the bank reconciliations to make sure they are completed properly.
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