An internal auditor found that there was no segregation of duties in the distribution department. The clerk working in the distribution department is responsible for processing orders, organising deliveries and allocating payments. This situation was also included in the final report of the previous engagement performed at the distribution department.
Required:
Which of the following alternatives indicate the action that should be taken by the internal auditor.

Question

An internal auditor found that there was no segregation of duties in the distribution department. The clerk working in the distribution department is responsible for processing orders, organising deliveries and allocating payments. This situation was also included in the final report of the previous engagement performed at the distribution department.

Required:

Which of the following alternatives indicate the action that should be taken by the internal auditor.

Accepted Answer

Include the current situation in the current year's engagement communication.

Answer

Withhold the audit report of the distribution department until the situation is resolved.

Answer

Request the manager of the distribution department to rectify the situation and if it is rectified, leave it out of the current report.

Answer

Request  additional resources  for the clerk as a matter of urgency.

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An internal auditor found that there was no segregation of duties in the distri...

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