A senior auditor is reviewing work papers prepared by a junior auditor indicating that a finding was removed after the auditee said they corrected the problem.
Which of the following is the senior auditor's MOST appropriate course of action?
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A. B. C. D.C.
The senior auditor's primary responsibility is to ensure that the audit process is conducted in accordance with established standards and that audit findings are accurate and complete. In this scenario, the junior auditor removed a finding from their work papers after the auditee claimed to have corrected the problem.
Option A: Approve the work papers as written This option is not appropriate because it implies that the senior auditor would accept the junior auditor's decision to remove the finding without any further investigation or analysis. This course of action would compromise the accuracy and completeness of the audit findings.
Option B: Refer the issue to the audit director Referring the issue to the audit director is a reasonable course of action. The audit director would have the experience and expertise necessary to review the situation and make an informed decision about the appropriate next steps.
Option C: Have the finding reinstated Reinstating the finding would be appropriate if the senior auditor determined that the junior auditor's decision to remove the finding was incorrect. Before taking this step, the senior auditor would need to review the auditee's documentation and conduct additional testing to confirm whether the problem had indeed been corrected.
Option D: Ask the auditee to retest Asking the auditee to retest is another reasonable course of action. The auditee would need to provide evidence of the corrective action taken and demonstrate that the problem had indeed been resolved. The senior auditor would then need to review this evidence and determine whether the finding should be reinstated.
In conclusion, while each of the four options has its merits, the most appropriate course of action for the senior auditor in this scenario is likely to refer the issue to the audit director. The audit director can review the situation, provide guidance on next steps, and help ensure that the audit process is conducted in accordance with established standards.