During the planning phase of an audit of suspected overbilling on contracts for security services, an auditor should perform all of the following except:
During the planning phase of an audit of suspected overbilling on contracts for security services, an auditor should perform all of the following except:
During the planning phase of an audit, the main focus is typically on gathering information, understanding the scope of the audit, and preparing for the audit activities. Interviewing an official of the security services company to determine the cause of recent increases in billings for services would be more appropriate during the fieldwork phase, where evidence is gathered and evaluated. In the planning phase, activities such as interviewing the manager who requested the audit, obtaining a copy of the contract, and preparing an engagement program are more in line with setting up the audit framework and understanding the context of the audit.
bcus this is planning phase and and also you cannot go the suspected party and ask them why your billing is high , you're internal auditor in your company not in the 2nd party company
I think this is a borderline situation smelling fraud. It would be better to gather first evidence that overbilling on contracts occur and then, once evidence is gathered, it would be important to understand if it is something done for unintentionally or intentionally. In case it is intentional, It would be better to leave the interview to a CFE.
Kindly help me understand the question and why answer is correct
Since its till an Audit planning phase ...I don't think interviewing will happen until audit field work happen. in planning phase I believe most of the time collection of document happen so I believe answer should be "C"
sorry answer is "A" I missed the keyword "except" in the question