Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
Deciding whether an individual expenditure is allowable requires the most judgment by an internal auditor. This task involves interpreting complex regulations, standards, and policies, and requires a thorough understanding of the specific circumstances of each expenditure. Determining allowability often involves a subjective assessment and may not always be straightforward, thus requiring significant professional judgment.
The ans should be D as the tolerable level is determined by auditors
I think the answer should be A because all the other options are the ones that must be agreed on by the management prior to the review
I feel the answer is A