During an operational engagement, an internal auditor observes a large number of above-ground storage containers and a large amount of black emissions from a smokestack. The organization has an environmental safety department. The engagement is not designed to consider environmental concerns. The best course of action is to
Make a note to consider environmental risk concerns when developing the engagement plan for the next year, but do not expand the scope of the existing engagement because the budget and risk priorities are already set. B.
Inquire of local management as to the use of the storage tanks to determine if they are properly classified as an asset. Do not take action on the environmental issues because the internal auditor is untrained in the area, and such action is the responsibility of an already existing department. C.
Report the observations to the engagement committee and seek their advice on whether the engagement should be expanded for the environmental audit. D.
Document the observations and report them to the environmental safety department. Determine if their response will be timely, and follow-up to determine if they have taken timely action.
The chief audit executive was reviewing recent reports that had recommended additional engagements because of risk exposures to the organization. Which of the following represents the greatest risk and should be the next assignment?
Three prenumbered receiving reports were missing.
There were several purchase orders issued without purchase requisitions. C.
Several times cash receipts had been held over an extra day before depositing. D.
Payment had been made for routine inventory items without a purchase order or receiving report.
An internal auditor has set an engagement objective of ascertaining compliance with a city ordinance forbidding city purchasing from vendors affiliated with elected city officials. Which of the following engagement techniques will best meet this...
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