At the Beginning of Fieldwork in an Audit of Investments

question 226

Multiple Choice

At the beginning of fieldwork in an audit of investments, an internal auditor noted that the interest rate had declined significantly since the engagement work program was created. The auditor should:

• A) Proceed with the existing program since this was the original scope of work that was approved.
• B) Modify the audit program and proceed with the engagement.
• C) Consult with management to verify the interest rate change and proceed with the engagement.
• D) Determine the effect of the interest rate change and whether the program should be modified.

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Definitions:

Brainstorming Literature

Literature that provides insights or methods on generating ideas and solutions through collective discussion or thought processes.

Communication

The act of transferring information from one place, person, or group to another, through speaking, writing, or using some other medium.

Confusing

Lacking clarity or easy understanding, often leading to uncertainty or misunderstanding.

Multi-attribute Utility Analysis

is a systematic approach used to evaluate and compare choices, by considering multiple criteria and assigning weights to them.