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)
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
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 16RQSC
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48a3ab99-f772-4cf8-b009-b5874f8761ab%2F4be2edec-8ae0-4887-a774-ea036675c1d1%2Fim8tknc_processed.png&w=3840&q=75)
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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