An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to:
Which of the following factors could interfere with effective problem solving by an internal auditor?
I.Reacting to previous experiences with clients.
II.
Focusing only on the most likely cause.
III.
Correcting the symptoms of problems.
When determining the nature, timing, and extent of follow up, the chief audit executive considers all of the following factors except:
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?
I. Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.
II. Determine if the contractor has billed for original contract work that was canceled as a result of change orders.
III.
Verify that the change orders were properly approved by management.
Which of the following would not include recommendations for process improvements?
