An internal auditor is assessing the risk of employees falsifying reimbursement requests for business-related meals or travel. Which of the following procedures would the internal auditor most likely perform first?
A.
Review the supplemental documentation provided for a sample of reimbursement requests.
B.
Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.
C.
Determine whether or not the payroll/accounting department has been subject to regular review.
D.
Establish a flowchart of the payroll/accounting functions that include any controls currently in place.
I thought the answer was option A, simply because option D (establishing a flowchart of any controls currently in place) may not be efficient, unless it involves analyzing an already existing flowchart.
But option D is ultimately the first step, since the auditor is first of all interested in the control environment. He/She goes from the general to the specific without alarming the client.
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John1237
1 month, 2 weeks ago