An Internal Auditor Prepared a Workpaper That Consisted of a List

question 168

Multiple Choice

An internal auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement: "A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached) . No exceptions were noted." The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

• A) Use of audit verification symbols to show that each file was examined.
• B) Removal of the employee names to protect their confidentiality.
• C) Justification for the sample size.
• D) Listing of the actual documents examined for each employee.

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Definitions:

Disaffirmed

The act of denying, rejecting, or nullifying an agreement or contract, especially by a minor.

Intoxicated People

Individuals under the influence of alcohol or drugs to a degree that impairs their abilities and decision-making capacities.

Disaffirm Agreements

The legal action of renouncing or rejecting a contract or agreement, especially by minors.

Restatement (Second)

A collection of model legal principles designed to clarify, modernize, and otherwise improve American common law, particularly in contracts and torts.