An Internal Auditor Is Reviewing the Accounts Receivable When She

question 67

Multiple Choice

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict. Which of the following is the most appropriate course of action for the CAE to take?

• A) Replace the auditor with another audit staff member.
• B) Continue with the present auditor, as more than one year has passed.
• C) Withdraw the audit team and outsource the financial audit of the division.
• D) Work with the division's management to resolve the situation.

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Definitions:

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digest functions, reducing heart rate, and increasing digestive activity.

Exocrine Glands

Glands that secrete substances through ducts to an external or internal surface of the body.

Endocrine Glands

Glands that secrete hormones directly into the bloodstream, where they regulate processes such as growth, reproduction, and metabolism.

Reticular Formation

A network of neurons located in the brainstem that is critical for regulating wakefulness and sleep-wake transitions.