During an Assurance Engagement, an Internal Auditor Noted That the Time

question 443

Multiple Choice

During an assurance engagement, an internal auditor noted that the time staff spent accessing customer information in large Excel spreadsheets could be reduced significantly through the use of macros. The auditor would like to train staff on how to use the macros. Which of the following is the most appropriate course of action for the internal auditor to take?

• A) The auditor must not perform the training, because any task to improve the business process could impact audit independence.
• B) The auditor must create a new, separate consulting engagement with the business process owner prior to performing the improvement task.
• C) The auditor should get permission to extend the current engagement, and with the process owner's approval, perform the improvement task.
• D) The auditor may proceed with the improvement task without obtaining formal approval, because the task is voluntary and not time-intensive.

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Definitions:

Long-Run Time Period

A duration in economics where all factors of production and costs are variable, allowing for complete adjustment.

Economies Of Scale

The economical benefits that businesses gain from their operation size, typically resulting in lower costs per unit of output as the scale expands.

Specialization

The process of focusing efforts and resources on a limited number of activities to increase efficiency and productivity.

Fixed Input

A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.